CBI urges government to relax planning time limit

The CBI has urged the government to allow the extension of planning permissions that are due to expire, in a bid to help construction firms forced to postpone projects during the recession.

Planning permission normally has a time limit of three years.

Firms that have won planning permission but risk losing it on projects which they have postponed due to the recession.

The CBI has written to government ministers calling for measures to allow applicants to extend planning permission, arguing that it would help companies to avoid the extra cost of reapplying.

CBI director for business environment, Dr Neil Bentley said:

“We want to make sure builders and developers can get to work quickly when firms are in a position to build again and not hold back the prospects of recovery by forcing them to jump through costly and uncertain planning hoops because their consent has lapsed.

“Introducing flexibility at this critical time by allowing firms to apply for a time-extension on planning permission would help them survive the recession, protect jobs and leave them better-positioned to take advantage of the economic recovery when it comes.

"Current planning laws need to recognise the exceptional economic environment that we face at the moment.”

The CBI said that the 1990 Town and Country Planning Act could be amended through the Local Democracy, Economic Development and Construction Bill, which is currently before Parliament.