Lord Falconer

The UK's planning system must be radically overhauled if Britain is to remain competitive, a key government minister is warning today.

Lord Falconer, the planning minister, says that a failure to improve the UK's infrastructure as a result of delays in the planning system has cost the UK billions of pounds and is stressing that the status quo is no longer an option.

In an exclusive interview with ePolitix.com, he called on all those with an interest in the planning process to deliver a "culture change" which produces more consensual decision-making.

Warning that Britain's competitiveness is being hit by the current planning system, Falconer says that companies will take their investment and jobs abroad unless the system is reformed.

The minister rejected criticisms that his proposed reforms were too "business friendly" and could see developers pushing through plans against local opposition.

"What we're after is a planning system that is confident that it's taking the right decisions; you only have a confident planning system if it's one that both a community and business think is taking the right decisions," he said.

"If you had a system where there were big question marks about the results that it was producing because people didn't trust it, it wouldn't be a robust system. So it's got to be a system that has the confidence of both the people in the community and of the business community, otherwise it simply spawns further disputes which lead to longer delays. We want to remove the adversarial elements in the planning system."

With consultation on the government's proposals continuing until March 18, Falconer said change was vital.

"The one thing that is not up for consultation is that change is required," he said.

"The downsides of the current system could be portrayed as follows: where a business has a choice whether it develops here or in another country, then frequently, delays in planning will mean it will favour another country. That has a cost in both economic activity and jobs as far as the country is concerned."

Referring to a series of delayed developments - including the new Heathrow terminal and various rail proposals - Falconer says key infrastructure projects are being held back.

"What is the cost to the country of the infrastructure being much worse than it might otherwise be? Well it's hundreds of millions, nay billions, of pounds," he said. "How much is that, it is almost impossible to work out accurately, but there plainly is a real cost in relation to that."

Remedying the problems in the planning system require a "culture change", said Falconer, with everyone having confidence in the reformed system.

"What's at stake is not just competitiveness and productivity, it's genuine community engagement," he said.