New British government proposes planning overhaul to boost growth

LONDON (Reuters) - The new British government on Wednesday said that the delivery process for critical infrastructure would be streamlined and more power given to local leaders under a proposed planning overhaul aimed at unlocking growth.

New Prime Minister Keir Starmer has made boosting Britain's anaemic growth one of the government's core aims since winning a July 4 election, and has pledged to build, rather than block, new housing and infrastructure.

The government said that the proposed new planning law would support economic growth and that local consent would only be able to shape how, not if, new projects are built.

"My ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high quality infrastructure and housing," King Charles said as he read out the government's legislative agenda.

The Planning and Infrastructure Bill will accelerate upgrades to the national grid, simplify processes around major new infrastructure projects and reform compulsory purchase compensation rules to block "excessive" payouts, the government said. It also plans to increase the capacity of local planning authorities.

In a separate proposed law, the government plans to establish a new framework for devolution in England, giving more powers to the mayors of metropolitan areas and to local combined authorities.

Local leaders will be given powers over planning, transport networks and jobs, as well as establishing a quicker process for more regions to be able to make use of such powers.

"My government believes that greater devolution of decision making is at the heart of a modern dynamic economy and is a key driver of economic growth," Charles said.

"Legislation will be introduced to give new powers to metro mayors and combined authorities. This will support local growth plans that bring economic benefit to communities."

(Reporting by Alistair Smout; editing by Sarah Young)