This Fortnight in Westminster: Local Plans, Airports, Water Reforms and Clean Energy Advances

March

2025

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📝 Planning - New Reforms to Local Plans

The government has confirmed a significant overhaul of the local planning system, aiming to speed up the local plan making process . As part of the Prime Minister’s 'Plan for Change,' the new reforms require councils to complete their local plans within two-and-a-half years, a substantial reduction from the current average of seven years.
As part of the broader Plan For Change, the upcoming Planning & Infrastructure bill (expected within the next two weeks) will also introduce regular assessments to ensure councils meet their housing targets, provide greater clarity on planning procedures, and leverage digital tools to enhance transparency around land availability for development

Housing and Planning Minister Matthew Pennycook said: “The steps we are taking today will ensure that local plans are simpler, faster to prepare and more accessible so that communities in every part of the country can more easily shape decisions about how to deliver the housing and wider development their areas need.”

A new dedicated webpage has been created to offer clearer guidance and practical tools to accelerate the plan-making process, supported by high-quality data. Over the next year, additional resources will be added to assist planners throughout all stages of creating or updating a local plan.
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The Planning & Infrastructure Bill confirming these changes, and fleshing out the wider planning reforms touted earlier this year, is expected to be released in the next three weeks.

The widely expected news that the UK government will approve Gatwick’s plan to bring its second runway into regular use has been welcomed by the airport. Transport Secretary, Heidi Alexander said she was “minded to approve” a Development Consent Order (DCO) for a second runway at London Gatwick Airport, this would effectively upgrade the status of the northern runway, enabling it to handle more than just taxiing aircraft or serve as a backup, subject to the submission of additional information on carbon emissions and noise.

Sir Sadiq Khan has stated the government's approach to approving plans for a second runway at Gatwick "raises questions" about the necessity of a third runway at Heathrow.

To provide Gatwick Airport with time to submit additional information by 24 April 2025 and allow for consultation with Interested Parties, the Secretary of State has set a new deadline of 27 October 2025 for making a decision on this application.
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Luton Airport's DCO is also due to receive a decision by 3 April 2025.

Heathrow is still in the pre-app stage meanwhile, and has been invited by the Government to submit an application to the Planning Inspectorate (PINS) by Summer 2025. Once complete, the Government will update the airports National Policy Statement (NPS).

The Water (Special Measures) Act 2025 received Royal Assent on February 24th, strengthening the powers of water sector regulators to combat pollution. This new legislation will grant regulators enhanced authority to take swift and stringent action against water companies that harm the environment or fail to meet customer expectations. It also introduces tougher penalties, including the potential for imprisonment, for water executives who obstruct investigations.
The announcement comes as Water companies prepare to embark on the 2025-2030 investment period – AMP8. With a quadrupling of investment and strong emphasis on innovation from water companies across the UK, the next five years should be a transformative period for the sector.

Environment Secretary Steve Reed emphasised that “This is just the beginning. The Independent Water Commission will report back later this year to shape new laws that will transform our water system so we can clean up our rivers, lakes, and seas for good.”

The new legislation grants Ofwat the power to prohibit the payment of bonuses to water company executives who fail to meet stringent standards for protecting the environment, consumers, and company finances.
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Other provisions in the Act include automatic penalties, enabling regulators to impose fines more swiftly without the need for extensive investigations. It also mandates independent monitoring of all sewage outlets, with water companies required to publish real-time data on emergency overflows.

Government has provided a major investment in Floating Offshore Wind in a Scottish Port. The Port of Cromarty Firth is set to become the UK’s first port capable of manufacturing floating offshore wind turbines on-site and at scale, thanks to funding from the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS).
As the first of its kind, the Port of Cromarty Firth will lead the way in floating offshore wind turbine production, marking a key step in the government’s Plan for Change to deliver clean power. Once fully developed, the port is expected to support up to 1,000 highly skilled jobs in the sector.

Scottish Secretary, Ian Murray, commented: “Scotland is a key part of making the UK a global leader in clean energy and this investment is a significant vote of confidence in the Inverness and Cromarty Firth Green Freeport and the surrounding area.”

The UK government’s initial financial support sets the stage for the port to secure additional match-funding from other investors, with operations expected to begin by early 2028.
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The expansion project is anticipated to create up to 320 jobs during construction. Once fully developed, the port will support up to 1,000 skilled jobs across various roles in offshore and floating offshore wind, including crane operators, marine engineers, and personnel involved in towing turbines out to sea for installation and operational support.

The UK government has launched a consultation on potential changes to its next round of Contracts for Difference (CfD) support.
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This consultation is seeking feedback on proposed changes for Allocation Round 7 (AR7), scheduled to open in summer 2025. Proposed changes include relaxing the CfD eligibility criteria for fixed-bottom offshore wind projects, allowing those that have not yet received full planning consent to participate in upcoming allocation rounds.

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