The government's landmark Planning and Infrastructure Bill aimed at accelerating housebuilding and critical infrstructure delivery has now become law following Royal Assent on 18 December 2025.

New powers in the Act that have now come into force will allow reservoirs to be built faster, enable a new scheme to slash energy bills for people living near pylons by up to £2,500, and support clean power projects being prioritised for grid connections to bolster Britain’s energy security.

The landmark Planning and Infrastructure Act will remove blockages and delays in the planning system, accelerating the construction of tens of thousands of new homes across every region.

The new law lies at the heart of government plans to build 1.5 million homes and make 150 decisions on major infrastructure - it will get dozens of new roads, railway lines, windfarms and other key critical infrastructure built quicker.

The government says that as a crucial pillar of its growth mission, the Act will make Britain a more attractive place for business, opening the door to more investment opportunities in major infrastructure and housing schemes.

In the coming weeks and months, ministers will set out when the remaining reforms in the legislation will come into effect as the government steps up to the plate to go further and faster in getting Britain building.

Housing Secretary Steve Reed said:

“Britain’s growth has been held back by a sluggish planning system, slamming the brakes on building and standing in the way of fixing the housing crisis for good...

“Our landmark Planning and Infrastructure Act will tear down barriers to growth, and this means getting spades in the ground faster, unshackling projects stuck in planning limbo and crucially unlocking a win-win for the environment and the economy.

“We’re ushering in a new era to build 1.5 million homes that will give families a secure roof over their head, alongside key infrastructure to create high-paying jobs and power our homes and businesses.”

According to Chancellor of the Exchequer Rachel Reeves, the landmark legislation will end years of dither and delay that has held back too many vital projects, like Lower Thames Crossing and Sizewell C.

Water Minister Emma Hardy commented:

“Water security is critical for our economy, food, energy, housing, and environment. Yet even as shortages grow, we haven’t built a new reservoir in 30 years.

“That’s why we’re cutting red tape and fast-tracking vital reservoirs. With £104 billion already secured for the water sector, our Water White Paper will deliver long-term reforms to get spades in the ground and infrastructure built.”

Key changes in the Act include:

• New Nature Restoration Fund will allow developers to get spades in the ground faster for multiple housing and infrastructure projects, with Natural England putting in place pro-nature measures at scale to restore natural habitats and wildlife.
• Limiting the number of attempts at legal challenge against government decisions on major infrastructure projects, with only one attempt rather than three for cases deemed by the court as totally without merit.
• Modernising planning committees to focus on the most significant developments rather than smaller projects, speeding up local decisions on new homes.
• Extra powers for development corporations to speed up delivery of large-scale projects, including the next generation of new towns, with more affordable homes and public transport.
• Simplifying the approval process for new EV chargers on public roads to save time and costs while supporting clean power.
• Enabling electricity bill discounts of up to £2,500 over 10 years for communities hosting new pylons and transmission infrastructure.

The government has also published an implementation plan setting out how the Nature Restoration Fund will work in practice and the timelines for the first Environmental Delivery Plans. The plan confirms the government will make cleaning up rivers by removing pollution at source a priority, along with streamlining processes for developers.

Major infrastructure projects will also face fewer delays from burdensome pre-application statutory consultation requirements thanks to an overhaul of the pre-application period. Alongside other reforms, this will speed up major infrastructure projects by 12 months on average.

Other measures in the Act introduce a number of new powers including:

• Enabling non-water sector companies to build reservoirs that are automatically considered as nationally significant infrastructure projects, which will speed up the approvals for large reservoirs.
• Creating new regulations that would allow councils to set their own planning fees so they can cover their costs when deciding upon applications for new homes and infrastructure.
• Introducing a system of strategic planning (known as spatial development strategies) that will look across multiple local planning authorities for the most sustainable areas to build and ensure new infrastructure is also being planned for to support the delivery of new housing.
• Giving new powers to the Secretary of State to create a financial benefit scheme to provide discounts on electricity bills for people living within 500 metres of new pylons.
• Replacing the flawed ‘first come, first served’ process to a ‘first ready, first connected’ system to prioritise the right clean power projects for quicker connections to the grid.
• Integrating new projects that generate electricity from renewable sources into the Public Forest Estate and exporting power from these projects to the National Grid.

CBI Chief Policy and Campaigns Officer, John Foster said:

“Royal Assent for the Planning and Infrastructure Bill is a major milestone in breaking the planning logjam that has held back growth for too long. Businesses have long called for a planning system that is faster, more predictable and strategic, and this legislation is a step forward in achieving that.

The real test will be swift and effective implementation, so firms can get spades in the ground, housing built, and critical infrastructure delivered. Government should continue to work at pace with industry to turn ambition into action.”