The Implications of the Planning Act 2020 Extension on Business Operations

The Implications of the Planning Act 2020 Extension on Business Operations

The UK government’s Planning Act 2008, introduced to streamline the country’s planning process for nationally significant infrastructure projects, underwent some important updates last year, with the Planning Act 2020 (PA2020) being put in place. This new act brings a few changes, including the extension of the duration of Development Consent Orders (DCOs), allowing for the authorization of infrastructure projects in England and Wales. This change has significant implications for business operations, particularly those in the construction and infrastructure industry.

First and foremost, businesses planning to undertake infrastructure projects that require planning consent should be aware of the increased time frame of the DCOs. The PA2020 extends the duration of DCOs from three to four years, granting more time to developers to begin their projects. This can be a useful benefit for companies that are undertaking larger, more complicated projects. The additional time will enable businesses to secure further funding, amend designs or work through any unforeseen delays that may have emerged. This could benefit projects such as new residential or commercial developments, transportation infrastructure, or energy facilities, by offering them more time and flexibility to proceed with a project.

However, businesses also need to be aware of the more stringent approach to community engagement in the planning process that the PA2020 brings about. The new act mandates that businesses develop a community consultation plan before submitting a DCO application, with a minimum of two consultations to be conducted with local communities. This process can be both time-consuming and expensive, making it important for companies to ensure that they understand the requirements set out in the PA2020 and plan accordingly.

Another significant implication of the PA2020 on business operations is the ability to manage multiple projects under a single DCO. Under the previous regime, a separate DCO had to be secured for each infrastructure project, regardless of whether the projects were located within the same geographical area or formed part of the same development. This change means that businesses will have greater flexibility to combine their projects under a single DCO, provided they can demonstrate that the projects are linked, cutting down on the time and expense of processing multiple consent applications.

Finally, the implementation of the PA2020 also marks a greater emphasis on environmental considerations in the planning process. Under the new act, developers must conduct more in-depth environmental assessments, taking account of the impacts on ecosystems, biodiversity, and air and water quality. To ensure compliance with these requirements, developers will need to conduct extensive research to provide evidence of the environmental impact of their projects.

In conclusion, the Planning Act 2020’s extension has significant implications for business operations, particularly for those in the construction and infrastructure industries. Businesses planning infrastructure projects should consider the additional time that the extension of the duration of DCOs offers but must be aware of the more stringent approach to community engagement and the greater emphasis on environmental considerations in the planning process. By staying up-to-date with the changes and planning accordingly, businesses can manage multiple projects under a single DCO, reducing the expenses and saves time during planning and construction stages.