Rachel Reeves has pledged to “deliver growth” in her first Treasury speech, with plans to restore mandatory local housebuilding targets and relax planning restrictions on “ugly” parts of the green belt.
So what can we expect from the “difficult decisions” Labour is taking as part of its plans to build millions of homes?
What is the green belt and how much of it is there?
About 13 per cent of England’s land is green belt, circling 15 cities. The designation was primarily created to prevent urban sprawl and the rules only allow it to be developed in “very special circumstances”. It can cover some developed land, as well as things such as golf courses and farms.
What is the ‘grey belt’ that Labour wants to build on?
Sir Keir Starmer has said he wants to allow building on “ugly” parts of the green belt. Labour points to sites such as petrol stations or disused car parks that have previously been built on green belt land as prime candidates for development. The exact definition of the term is yet to be set out, but will be broader than brownfield land, covering areas with “little intrinsic beauty or character”.
How much of this land is there and how many homes will be built?
About 7 per cent of the green belt, or 430 square miles, is built on. Labour has not set a target, but industry sources say that anywhere between 100,000 and 500,000 homes could be built on the “grey belt” depending on how it is defined. This is only a fraction of the 1.5 million homes Labour has pledged to build over the next five years, but the party believes the green belt will make an important contribution.
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So is the rest of the green belt sacrosanct?
Not entirely. Labour insists it will not build on “genuine nature spots” and will keep a brownfield-first policy. But the party will tell councils to come together to develop strategic housing plans for broader areas to encourage larger, more thought-through new settlements instead of smaller piecemeal developments over wider areas. If local authorities decide they need to release some green belt land for these new sites, Labour has said they are minded to approve them.
Does this require a change in the law?
Labour believes not. Most of its housing plans will require only changes to the national policy planning framework, which ministers can do without a vote in parliament. Rules on the green belt could be changed through a written ministerial statement instructing planning officers how they should interpret the “very special circumstances” in which building is allowed. Under the Conservatives ministers said the value of new homes “is unlikely to outweigh harm to the green belt”. Labour is likely to change this wording to encourage more approvals and reduce legal challenges.
Is the party changing other rules on the green belt?
A review is also being planned, and this is likely to ask councils to revisit the boundaries of the green belt. This could release more areas for development, although details are not yet clear. The party is likely to come under pressure from housing campaigners to release land near stations and other transport links for development.
Why is housebuilding so crucial for growth?
The eye-watering cost of housing means people have far less disposable income to spend on other things that would boost the economy. In addition, high house prices in dynamic areas such as London and the southeast deter people from moving to places where they could get better-paying jobs.
How else can planning reform boost growth?
Economists broadly agree that more infrastructure ranging from wind farms to road and rail is likely to boost the economy by making it easier and cheaper to do business. In addition, speeding up other planning decisions will help companies grow, with Labour aiming to focus particularly on new laboratories and data centres for cutting edge industries. While the party has made building a key focus of its growth plans, it has not quantified how much it expects this to boost the economy.
Is Labour building new towns on the green belt?
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Probably not. While the party is promising to identify sites for new towns within a year, these are more likely to be greenfield sites close to key transport links and other infrastructure. However, the party has not ruled out using part of the green belt for new developments if councils think it is necessary.
