The HPD grant was linked to the housing targets set out in the Regional Strategies, where councils had to demonstrate they had a five year supply of land to meet targets. The new Government has committed to abolish Regional Strategies, and return planning powers to councils and communities, with powerful incentives to deliver new homes and businesses.
But the Royal Town Planning Institute (RTPI) and the Planning Officers Society (POS) have questioned communities secretary Eric Pickles’ decision to scrap the grant worth £141m to local planning authorities, some of whom had been allocated seven-figure sums.
Matt Thomson, head of policy at the RTPI, said: “Cutting the entire grant will hinder councils making plans. The grant has been used by many authorities to increase their ability to engage with communities and undertake research, both of which are key Government objectives.”
“It is essential that councils are motivated to produce sound plans. Strong visions are needed for the future of places as an essential part of attracting inward investment for economic recovery,” he said.
John Silvester, spokesman for the POS, said: “We recognise that planning cannot be immune from sharing the burden of easing the huge budget deficit the country finds itself in but, nevertheless, it should be appreciated that planning is key to economic recovery.”
He stressed that the grant had been effective in many authorities in supplementing authority budgets and allowing improvements in service which would otherwise not have been possible.
He added: “Planning is at the front line of economic regeneration and delivery. So, while we await a recovery, and an increase in fee income which will enable authorities to recruit again, there really ought to be a freeze on further job cuts in front line planning services. A new form of incentive or reward for local authorities that deliver new jobs would be welcomed.”
But communities secretary Eric Pickles has argued that the funding was flawed. He said: “We believe the grant has proved to be an ineffective and excessively complex incentive. The coalition agreement set out that we will provide incentives for local authorities to deliver sustainable development, including for new homes and businesses.”
