Healey unveils major cuts to fee for extending planning permission

The fees that developers and homeowners have to pay to extend existing planning permissions are to be significantly reduced, the Planning Minister has said.

The move, which is estimated will cost £69m when combined with other reforms, is intended to boost the economy by giving developers more time to build developments that might otherwise stall.

The fee for extending planning permission on major developments will now be just £500, when previously it might have been up to £250,000. The fee for smaller developments will be £170, down from as much as £3,000. For householder projects, it has been reduced to £50 from £150.

The reduced levels apply to both applications to extend existing planning permission and non-material amendments to an existing planning permission.

John Healey said: “As we work to secure a strong economic recovery, we need to do what we can to keep plans for new development on the table. The planning system has to adapt to current economic circumstances to help homeowners, industry and developers, and we have done just that.”

The annual rateable value limit below which the owners of small businesses can serve blight notices and claim other types of compulsory purchase compensation has also been increased from £29,200 to £34,800 from 1 April 2010.