Planning fees would need to be increased by almost 60 per cent to ensure all councils in deficit are able to break even, LGA modelling has revealed.
A technical government consultation on increasing fees to reduce the funding shortfall for councils’ planning application services proposes a 35 per cent increase in fees for major applications and 25 per cent for all others.
However, with 305 out of 343 local authority planning departments operating in a deficit totalling £245.4 million in 2020/21, the LGA says giving councils the flexibility to set fees at a local level would ensure they are able to cover individual costs.
If fees remain set at a national level, they would require a 57 per cent increase across the board to allow for balancing of the books – far higher than the proposed 35 and 25 per cent rises.
Local planning authority teams are also experiencing a significant challenge in resourcing, with recruitment and retention of planners proving a struggle for councils across England. Since last year, more than a quarter of local authorities have seen teams shrink.
The LGA said that increasing planning fees by the proposed amount will not automatically decrease the number of vacancies, nor will it solve historic issues of retention.
Cllr Linda Taylor, LGA Housing Spokesperson, said: “We recognise there are some resource concerns in council planning teams.
“While we are pleased the Government is looking to increase fees, we are concerned that the proposed uplift fails to future-proof the sector and ensure planning departments can continue to enable the delivery of housing targets, including the affordable homes and infrastructure that the country needs.
“Councils must have the flexibility to set planning fees at a local level to cover their costs relating to planning, which could include the employment of qualified planners.
“This would put councils in a stronger position to address the issue of resourcing in the planning sector.”