Plans: Byers

Britain's planning system is set to be radically overhauled to end the major delays that accompany big building projects.

Stephen Byers, the transport local government and regions secretary, published a green paper on Wednesday which included the proposal that parliament and not an independent inspector should recommend whether or not major projects go ahead.

Byers said his plans would allow people to take part in decisions about the future of their community on an almost street by street basis. he claimed that his proposals will encourage local councils and developers to reach out to the community before seeking planning permission.

"This is a radical change in the way we look at planning. Instead of being led by plans we will be led by people. We want a planning system in which the values of the whole community are allowed to prosper and develop. The current system does not allow that. It is slow, ponderous and uncertain. It benefits those with large cash and time resources and excludes those without. Our proposals have been characterised as being good for business. That is true. But they are good for the rest of the community, too," he said.

One key to the proposed change is the introduction of new local planning frameworks, including neighbourhood and village plans. Covering communities down to the local level, these will set out how neighbourhoods can be preserved - and how they need to change. The time it takes to get a decision on an appeal to the secretary of state will be halved, Byers claimed.

New "business zones" will allow developers to build in designated areas without requiring specific planning approval. This will apply only to low impact development where it doesn't put a strain on local services or create massive new housing demand.

The paper, drawn up by Tony Blair's close ally Lord Falconer, includes controversial proposals refusing the public the right to challenge decisions that go against them, even when they breach supposedly binding local plans.

In what will be a hugely controversial change, local people and special interest groups will get only a limited say in future planning inquiries.

Strategic planning decisions will be made by regional development agencies, which are at present unelected, in consultation with district councils

Falconer has drawn up what he described as a "business-friendly green paper".

In an attempt to head off critics, the housing minister said it should be judged "by the test - does this system genuinely ensure that the community's voice will be heard?".

Critics of the current planning system say it is unwieldy for major infrastructure projects such as the Terminal Five saga and say it is time consuming and financially wasteful. It has been criticised as a "nimby's charter" that benefits people who say "not in my back yard" to major projects.

The chancellor has also argued that the current system stands in the way of his goal of improving the UK's international competitiveness.

The marathon public inquiry into the terminal five for Heathrow set a record, and a series of others, like Sizewell B and the Isle of Harris superquarry, have convinced ministers that the system allows major projects to be held up by a handful of people.

Defenders of the current arrangements argue Byers' plans are nothing less than an attack on the democratic rights of local communities.

Residents who have to live with new trunk roads, nuclear power stations or runways will be angered by the idea of limiting local inquiries to discussing the detail of design.

Byers is expected to face further accusations of centralising tendencies from the Opposition benches.

Environmentalists have already expressed concern, arguing developers are equally adept at abusing the system by exploiting loopholes, submitting repetitive applications and appealing against refusals for development which conflict with democratically agreed plans.

In its general election manifesto the government pledged to put "urban renewal at the heart of the planning system". It also set a target of 60 per cent of new house building to be on brownfield land or through converting existing buildings.

Theresa May, shadow secretary of state for transport, local government and the regions, claimed local people will be "robbed of their voice" by the government's plans.

"While the planning system needs reform, abolishing local communities' say on local planning is a retrograde step. Local people will be robbed of their voice on large developments like new airports, incinerators and power stations," she said.

May predicted the countryside would be one of the first casualties. "Labour are effectively giving the green light to greenfield destruction on a massive scale. Removing county councils' planning powers is just another step in Labour's regional agenda. People will become even more disillusioned with the political process if they lose the power to influence decisions affecting their own back yard," May said.