Industry calls for radical shake up of planning system – Make UK report
27/05/2026 MAKE UK
Regional Mayors should be given greater powers on key projects
Key findings:
- Nearly half of manufacturers say the planning system is holding back the UK’s economic potential.
- Almost half of manufacturers believe the planning system is slowing their ability to grow or invest in their business
- Nearly half report that the biggest barrier is the complexity of planning regulations
- More than two thirds of companies support stronger planning powers for regional mayors
- Two thirds of manufacturers say coordinated regional planning would make it easier to expand
- Over half of manufacturers say environmental policies that protect species such as newts and bats have affected planning proposals
Britain’s manufacturers are calling on the Government to turbocharge planning reforms in order to help boost economic growth, or risk failing to deliver on key ambitions such as industrial strategy, regional development and decarbonisation.
The call was made on the back of a new report and survey out today from Make UK which shows manufacturers’ widespread dissatisfaction with the current system which it describes as ‘not fit for purpose’, is overly complex and leading to delays and increased costs. The report shows that these factors are actively deterring business investment and acting as a drag on the UK’s economic potential.
In response, Make UK is calling for much faster and bolder action than is currently taking place with the Planning and Infrastructure Bill, in particular giving stronger strategic or mayoral powers to improve delivery and align land, infrastructure and industrial priorities. Furthermore, Make UK is calling for strategic manufacturing and other major infrastructure projects to be fast tracked.
Commenting, Faye Skelton, Head of Policy & Campaigns at Make UK, said:
“In the context of an industrial strategy focused on productivity, regional growth and the energy transition, ensuring the planning system supports manufacturing investment is essential. Yet, the current system is not fit for purpose and is too often a source of friction rather than a driver of growth.
“While Government has recognised many of these challenges and is pursuing a significant programme of planning reform, the experience of manufacturers suggests a gap between policy intent and reality. Many still encounter a system that is slow, cumbersome and difficult to navigate. If Government is to deliver on its number one mission to boost growth it must now go further and faster, ensuring planning shifts from being a barrier to a driver.”
According to the report almost half of companies (46%) believe the current planning system is hampering the UK’s economic potential with just 14% of companies believing the current system supports growth.
Furthermore, a similar number (43%) of manufacturers say the planning system slows their ability to grow or invest, highlighting its direct impact on business activity. According to Make UK this shows that planning isn’t just influencing investment decisions, it’s slowing them down.
The biggest barriers are the complexity of regulations (48%), the cost of compliance (44%), and inconsistent decisions across authorities (38%). This is essentially a triple threat for manufacturers, creating a system that is hard to navigate, expensive to engage with and fundamentally unpredictable. To help address this, two thirds of companies (65%) say coordinated regional planning would make it easier to expand, while more than half (53%) say lower application and compliance costs would make it easier for businesses to invest.
Environmental requirements are also a growing source of friction in the planning system. Over half of manufacturers (54%) say they create obstacles at least occasionally, with 14% experiencing this frequently, pointing to a system where regulation is increasingly adding delay and complexity. While not universal, the impact is significant, particularly in sectors facing more stringent requirements. Make UK pointed to the estimated £100million spend on a tunnel on the HS2 project to protect bats.
To help address barriers in the current system, as well as stronger strategic and mayoral powers Make UK has made the following key recommendations:
- Introduce a ‘Manufacturing Growth Test’ for planning reform to assess whether reforms are actually reducing cost, complexity and uncertainty for businesses looking to invest, expand and decarbonise.
- Fast track strategic manufacturing investment for strategic manufacturing projects and regions, particularly those driving productivity, net zero or supply chain resilience.
- End postcode planning through stronger national rules to remove uncertainty and inconsistency from different local authorities.
- Cut the cost and complexity of planning applications to speed up and simplify applications.
- Fix environmental processes so they are predictable and proportionate and move away from a case by case negotiation.
The survey of 196 companies was carried out between 20 March and 10 April
Print this articleFor more information, please contact:
MAKE UK
Broadway House
Tothill Street
London
London
SW1H 9NQ
Tel: +44 (0)207 6541515
Email: MSwift@makeuk.org
Web: https://www.makeuk.org/
Share article:
Process and Control Today are not responsible for the content of submitted or externally produced articles and images. Click here to email us about any errors or omissions contained within this article.