Setting planning fees locally

Nagla Stevens looks at provisions in the Planning and Infrastructure Bill 2025 that will allow local planning authorities to set planning application fees locally.

Why is the government proposing to introduce the ability for LPAs to set local fees?

To allow cost recovery of determining planning applications. The Explanatory Notes to the Bill state that planning fees are an integral part of the planning system and are necessary to ensure that LPAs have the adequate funding to appropriately cover delivery of services to determine planning applications.

Under the heading ‘Improving certainty and decision-making in the planning system’ the government is proposing to introduce the ability for local authorities to set local fees for planning applications. So, what does the Bill provide for?

Are nationally set fees a thing of the past?

No. A national fee for categories of planning applications (as is done currently) will continue to be set. The government recognises that these nationally set fees do not always meet an LPA’s actual costs of providing these services. LPAs will therefore be able to vary these fees where they consider the nationally set fee does not meet their actual costs. 

How will the ability for local authorities to set local fees be introduced?

Regulations. Clause 44 of the Bill introduces a new section 303(5A) into the Town and Country Planning Act 1990 (‘TCPA 1990’) that would give the Secretary of State the power to make regulations to ‘authorise or require’ a local planning authority in England to set the level of a fee charge.

Will LPAs be able to make a make a profit from local fees?

No. New Section 303(8B) TCPA 1990 provides that any fees must be set with a view to ensuring that in so far as is possible, it does not exceed the cost of carrying out the function in respect of which it is imposed. 

Will LPAs be able to set local fees as they see fit?

No. In the regulations, the Secretary of State will make provisions about what consultation needs to be carried out in relation to the setting of fees, the criteria to be applied when setting the level of fees, publication of information or reports, obligations to notify the Secretary of State and reviews of the level of fees (new section 303(5C) TCPA 1990).

In addition, under new section 303ZZA TCPA 1990, the Secretary of State has the power to make directions where it is considered that fees set by an LPA are inappropriate.  

What will LPAs be able to use the income raised for? 

Carrying out the LPA’s planning function. New section 303(8C) TCPA 1990 essentially ringfences any income raised from planning fees by providing that they must be applied towards the delivery of the planning function to ensure improved service delivery.

The initial verdict?

By setting fees that reflect actual costs, LPAs will be able to ensure that planning departments are adequately funded. The ability for LPAs to adjust fees by reference to complexity and local circumstances should encourage more efficient processing of applications. Local fee setting will go some way to ensure that LPAs are better resourced.

Nagla Stevens is Legal Director in Birketts’ Planning & Environmental Team.