The 2026 Budget: 5 things that matter in Planning

The Government’s 2026 Autumn Budget has introduced a number of measures that could have significant implications for the planning and development sector.

With housing delivery remaining a major political priority, the Chancellor has announced further investment in affordable housing, changes to Biodiversity Net Gain (BNG), greater use of artificial intelligence within the planning system and measures intended to provide more certainty for developers.

But what do these announcements actually mean for landowners, developers and those looking to bring forward new development sites?

We take a closer look at five key announcements and consider where they could create opportunities.

1. Further Changes to BNG

One of the most significant planning-related announcements is the proposed exemption from Biodiversity Net Gain requirements for residential brownfield developments on sites of up to 1.5 hectares. The Government changed the exemption limit earlier this year to 0.2 hectares. An increase to 1.5ha is very significant.

Since the introduction of mandatory BNG, developers have had to demonstrate that qualifying developments deliver at least a 10% improvement in biodiversity value. Where this cannot be achieved on site, developers may need to purchase off-site biodiversity units or statutory credits.

For smaller development sites, these requirements can introduce additional costs, complexity and uncertainty, particularly where there is limited space to accommodate biodiversity enhancements within the development itself.

The proposed exemption recognises that these additional requirements can sometimes make otherwise suitable brownfield sites more difficult to deliver.

DCIM\100MEDIA\DJI_0327.JPG

For developers and landowners, this could be an important change. Smaller sites, including former commercial premises, redundant employment land and previously developed sites within settlements, may become more attractive development opportunities.

If you own previously developed land, particularly within or adjoining an existing settlement, it may be worth revisiting its development potential.

However, the exemption is not yet fully implemented. The Government is expected to publish its consultation response and further details on the scope and implementation timetable. Other planning, environmental and ecological requirements will also continue to apply.

2. Further investment in affordable housing and first-time buyers

The Budget places considerable emphasis on increasing housing delivery and supporting people onto the property ladder.

An additional £1.5 billion has been committed to the Social and Affordable Homes Programme, which is expected to support approximately 10,000 additional homes in England.

The funding will be particularly focused on Social Rent, including increasing the ability of local authorities to deliver new council housing.

Alongside this, the Government has confirmed £4.7 billion for its new Your First Home equity-loan scheme.

The scheme is intended to support approximately 70,000 households, offering eligible first-time buyers government equity loans of up to 20% towards the purchase of a property.

The intention is to make home ownership more accessible, with a reduced deposit requirement and an initial five-year interest-free period on the equity loan.

What does this mean for development?

The additional affordable housing funding should provide greater opportunities for development involving registered providers and local authorities.

For landowners, this could create opportunities to explore partnerships with affordable housing providers, particularly where sites are capable of delivering larger residential schemes.

The first-time buyer initiative is also intended to support demand for new homes, although its actual impact will depend on how the scheme operates and the availability of suitable housing.

Ultimately, these announcements reinforce the Government’s intention to increase housing supply through a combination of private development, affordable housing and council-led delivery.

3. Artificial intelligence could change how planning applications are assessed

The Government has made a further commitment to modernising the planning system through the introduction of artificial intelligence and improved access to planning data.

Its PlanAssist AI tool is intended to be made available to all Local Planning Authorities in England by the end of 2027, subject to further testing.

The technology is designed to bring together planning applications, relevant planning policies and site constraints to help planning officers assess proposals more efficiently.

Alongside this, Local Planning Authorities will be required to digitise and publish key planning documents as open data by the end of 2027.

This could represent a significant change in how planning information is accessed and used.

At present, understanding the planning position of a site can involve reviewing multiple documents, policy maps, committee reports, historic applications and technical evidence. Much of this information is held in different formats and across different platforms.

Improved access to structured planning data could make this information easier to interrogate and compare.

What does this mean for landowners and developers?

There is potential for site assessments, planning research and application processing to become more efficient.

It could also improve the ability to identify development opportunities by making planning constraints, policy designations and historic decisions easier to analyse.

However, artificial intelligence is unlikely to replace the need for professional planning judgement.

Planning decisions involve interpreting policy, understanding site-specific circumstances, balancing competing considerations and engaging with local communities. These are areas where experience and professional expertise will remain important.

The real opportunity is likely to be in combining better technology and data with informed planning advice..

4. Greater certainty around building regulations

One of the less publicised but potentially important announcements is the Government’s commitment not to introduce major changes to building regulations for the remainder of this Parliament.

The commitment is intended to provide greater certainty for developers, housebuilders and local authorities following a period of considerable regulatory change.

The Government has acknowledged that the cost of delivering new homes has increased significantly, with material and labour costs contributing alongside the cumulative impact of regulation and policy requirements.

Building safety improvements will continue, including the implementation of recommendations arising from the Grenfell Tower Inquiry. However, the wider intention is to provide a more stable regulatory environment.

Why does this matter?

Development viability is influenced by a combination of land values, construction costs, infrastructure requirements, planning obligations and regulatory requirements.

Where these costs change frequently, it can become more difficult for developers to assess the financial implications of a scheme and make longer-term investment decisions.

Greater regulatory certainty should help developers plan ahead and provide more confidence when assessing potential development sites.

For smaller developers in particular, reducing uncertainty and avoiding unnecessary additional costs could make a meaningful difference.

It is important to recognise, however, that this is not a freeze on planning policy or all development requirements. Local planning policies, environmental obligations and building safety requirements will continue to evolve.

Higher Density Development

The revised framework strengthens affordable housing expectations.

Existing requirements for Social Rent provision remain, while major developments will also be expected to provide a minimum proportion of homes meeting M4(2) accessibility standards, subject to local exemptions.

Combined with the strengthened Golden Rules for Green Belt development, affordable housing delivery is becoming an increasingly important consideration in both site promotion and viability assessments.

Stronger Protection for Pubs and Community Facilities

The framework provides enhanced protection for valued community assets.

Public houses, local shops, places of worship and similar facilities can only be lost where:

  • Robust marketing evidence demonstrates there is no reasonable prospect of continued use.
  • Equivalent replacement facilities are provided.
  • Sufficient alternative provision exists nearby.

The change of use of a pub to residential has been difficult for many years. The New NPPF does not seek to change this.

5. More regional control and investment in local growth

The Budget continues the Government’s wider commitment to devolution, with greater financial powers and investment opportunities for regional and mayoral authorities.

This includes additional funding through Good Growth initiatives and a new £1.5 billion borrowing facility for mayoral authorities, intended to support infrastructure, transport and regeneration.

The underlying principle is to give local and regional leaders greater control over investment decisions and the ability to support economic growth in their areas.

For the planning and development sector, this could have important implications.

Infrastructure investment can influence where development takes place, improve the attractiveness of previously underused land and help unlock sites that might otherwise struggle to come forward.

Improved transport connections, regeneration initiatives and investment in local employment opportunities can all contribute to creating more sustainable locations for development.

What should landowners consider?

It will be increasingly important to understand the economic and development priorities of individual regions and local authorities.

Sites that align with emerging infrastructure investment, regeneration strategies or local economic growth objectives could present opportunities for landowners and developers.

This is particularly relevant when considering land promotion and the preparation of representations to emerging Local Plans.

Understanding the wider strategic direction of an area can be just as important as understanding the planning constraints affecting an individual site.

What does the Budget mean for the future of planning?

Taken together, the announcements demonstrate a continued Government focus on increasing housing delivery, reducing barriers to development and modernising the planning system.

For landowners and developers, several themes stand out:

  • BNG Threshold Increase: Smaller previously developed sites could become more attractive following the proposed BNG exemption.
  • Affordable housing: Additional investment could create new opportunities for council-led and partnership development.
  • Digital planning: Better access to planning information could improve the identification and assessment of development opportunities.
  • Greater certainty: A more stable regulatory environment could help developers make longer-term investment decisions.
  • Regional growth: Infrastructure and regeneration investment could create opportunities in locations aligned with local economic priorities.

However, it is important to remember that a Government announcement does not automatically translate into planning permission or a viable development.

The suitability of a site will continue to depend on its location, planning policy context, environmental constraints, infrastructure capacity and the wider planning balance.

For landowners, the key is understanding how these changes interact with the planning position of their own land.

If you own land or are considering a development opportunity, now could be a good time to review its planning potential.

Get in Touch

← Back

Thank you for your response. ✨

Posts

Welcome to a world of limitless possibilities, where the journey is as exhilarating as the destination, and where every moment is an opportunity to make your mark.

  • The 2026 Budget: 5 things that matter  in Planning

    The Government’s 2026 Autumn Budget has introduced a number of measures that could have significant implications for the planning and development sector. With housing delivery remaining a major political priority, the Chancellor has announced further investment in affordable housing, changes to Biodiversity Net Gain (BNG), greater use of artificial intelligence within the planning system and…

  • The New NPPF (2026): A Fundamental Shift in Planning, Housing Delivery and Rural Growth

    The publication of the latest National Planning Policy Framework (NPPF) represents one of the most significant changes to the planning system in recent years. As the seventh full version of the NPPF since 2012, another update might not immediately seem remarkable, particularly to those of us now having to abandon well-worn paragraph references (again). However,…

  • BNG (Biodiversity Net Gain) Changes 2026

    What Developers and Landowners Need to Know The Government has announced a number of important changes to Biodiversity Net Gain (BNG), with new regulations laid before Parliament on 13 July 2026 and coming into force on 6 August 2026. These amendments are intended to reduce the burden on smaller developments, simplify parts of the BNG process,…