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Mark Hand: Welsh Government Draft budget boosts planning services

This week, the Welsh Government published its draft budget for 2025-26, which includes substantial funding for government departments. The budget is focused on four key priorities: jobs and green growth, families, community connection, and Iechyd da (a ‘healthier Wales’). Each of these priorities will directly impact planning, from building social homes for families to improving public transport and road networks to connect communities.

The government appears to recognise the important role planning plays in delivering these priorities. In 2022, the RTPI Cymru highlighted the challenges Local Planning Authorities face due to insufficient investment. We have been working to make this point to government, outlining the difficulties Local Planning Authorities would face if increased workloads were not met with increased resources.

In our response to the Senedd's consultation on the Welsh Government's draft budget for 2025-26, we set out the vital role that planning will play in addressing the climate and nature emergencies, supporting green growth and the rapid transition to net zero carbon, but highlighted resourcing as a key challenge for planning and its supporting sectors and services.

We’re pleased to see many of our ‘asks’ are included in the draft budget. Of the £1.5 billion set aside for public services in the budget, planners should expect:

  • An additional £3.7m to help accelerate planning decisions, increase capacity in the planning system and support a programme of digital transformation of planning services.
  • An additional £5m for Natural Resources Wales to help deliver infrastructure consents quickly and to provide the necessary input into land use and marine planning decisions.
  • An additional £5m resource funding to deliver renewable energy projects and local energy systems.
  • Continued investment in city and growth deals alongside £88m ringfenced capital funding from the UK government.
  • An additional £23m capital funding targeted at employment sites for the delivery of green jobs.
  • Additional funding for flood risk management, coal tip safety, improving water quality and nature restoration.
  • £57m for Help to Buy Wales.
  • An additional £81m capital funding for Social Housing Grant and Transitional Accommodation Capital Programmes to help social housing providers deliver homes at pace.
  • £70m resource and £51m capital funding to improve rail and bus services and repair roads.

Following scrutiny by Yr Senedd, the final budget will be published on 25th February 2025. While we welcome the investment and core messaging to drive performance and speed up delivery, we remain committed to ensuring placemaking and sustainable development principles remain at the heart of decision-making.

Alongside the budget announcement, three key activities are underway:

Planning fee increases to boost planning services

In November, the Welsh Government launched a consultation on increases to planning application fees with the objective of achieving cost recovery in coming years.

The consultation Promoting a resilient and high performing planning service, which closes on 17th January 2025, includes a number of broader proposed changes, such as doubling the fee for retrospective applications and introducing a fee for lodging an appeal.

Underlying these proposals is an expectation that higher fees are accompanied by an improved planning service: additional income is re-invested in the planning service to increase capacity and improve service delivery.  This reinvestment to improve planning services is absolutely central to delivering the outcomes and achieving the change that motivates us as planners.

Have your say on these proposals

RTPI Cymru will be hosting a small virtual roundtable discussion on 9th January 2025 to explore the views of our members from different sectors on Welsh Government’s proposals set out in this current consultation. To request a place, please follow this link Registration of interest- RTPI Cymru Housing Roundtable - 09/01/2025

Upcoming research

RTPI Cymru has submitted a bid to undertake evidence gathering on public sector planning resource levels, skills and future needs, looking at Local Planning Authorities, Natural Resources Wales, Planning and Environment Decisions Wales (PEDW) and the Welsh Government’s own planning division. This work will gather evidence of the issues faced to help inform solutions.

RTPI Cymru has commissioned Dr Ruth Potts and Dr Brian Webber, from Cardiff University to undertake research that will scope the potential for digital planning to ease resource pressures and improve planning outcomes in Wales. This research is expected to be published mid-2025.

RTPI Cymru looks forward to working with our members and sister built-environment professions to ensure the planning system in Wales is adequately resourced for it to achieve its full potential in addressing the broad range of complex and challenging issues it faces. 

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