Comment
From policy to investment: economic growth in the draft NPPF
The NPPF has substantially moved on since its original publication in 2012, and this is noticeably marked by the shift in the planning system to support economic growth. This reflects the Government’s central mission to “kickstart the economy.” We submitted our NPPF consultation response in March, and in this article we summarise some of our responses and our views on revised national policy for economic growth.
The shift to support growth, which is well overdue, is clear in the draft NPPF, which places emphasis on enabling economic growth in national policy and guidance (please also see our earlier article on economic growth). The rules-based approach taken to revised national policy for plan-making and decision-making will facilitate this move by offering land promoters, developers and investors more certainty when bringing forward land and premises for business use, but, as always, more precision can be offered in the final revised NPPF.
Below are some of the key proposed amendments to bolster economic growth.
Strategic planning and development
The return of strategic planning via the preparation and implementation of spatial development strategies will facilitate economic growth at the right geographical scale. However, it is paramount that spatial development strategies apply equal focus to business land and premises as well as housing need. Therefore, direct and precise reference should be made to “business land and premises” in Policy PM1.
Storage and distribution
The recognition that major development for storage and distribution purposes takes place outside of settlements in Policy S5 is important, given its bespoke locational considerations and its role as critical national infrastructure. The final revised NPPF should expand Policy S5 to equally distinguish the importance of the modern economy and the priority growth sectors in the National Industrial Strategy.
National strategies and flexibility
The greater emphasis on relevant national strategies and priorities (e.g. Industrial Strategy Zones, AI Growth Zones and the National Industrial Strategy) and the need for flexibility in planning for economic growth in Policy E1 will provide stronger and more precise conditions for long-term prosperity via plan-making.
Site allocation
The clarity that site allocations should not be subject to overly prescriptive requirements on acceptable uses will provide flexibility to respond to changing market demands. However, local planning authorities should be directed to refrain from prescription on building sizes or quantum of uses in site allocations.
Market signals and consistency
To provide consistency, Policy E1 must make specific reference to take market signals into account when preparing development plans to ensure consistency between plan-making and decision-making when identifying needs for business land and premises.
Economic benefits in decision-making
The approach to meeting needs for business land and premises in Policy E2, and the “substantial” weight to be given to economic benefits, tips the balance in favour of economic growth. This national decision-making policy provides the much overdue clarity to local planning authorities on how to consider and balance development proposals for economic growth. This, in turn, will foster certainty for land promoters, developers and investors.
Planning Practice Guidance
Critically, the Planning Practice Guidance (PPG) must be reviewed and updated to inform the interpretation of Policy E2 including broadening factors defining “market signals”, the definition of a catchment area, suitable availability rates, and identification of the specific locational requirements for priority sectors in the National Industrial Strategy.
In summary, the draft NPPF provides a stronger starting point for the positive planning of economic growth and productivity at different geographical scales. It should provide a step-change in the positive determination of proposals for economic growth - unlocking potential substantial investment to "kickstart the economy."
For more information on what the proposed NPPF amendments could mean for economic growth and planning policy, please contact Sam Lake.
13 April 2026