Welsh planning policy calls for 'whole economy' approach to decision making

The policy (213-page / 5.66MB PDF) requires  local authorities to "ensure that the economic benefits associated with a proposed development are understood" and that these are given "equal consideration with social and environmental issues in the decision-making process". It also says that local authorities should recognise that there will be occasions when the economic benefits will outweigh  social and environmental considerations.

In accordance with the new policy, local planning authorities should aim to facilitate the provision of sufficient land for economic uses required by the market. They should seek to guide and control economic development to facilitate regeneration and promote social and environmental sustainability.

The policy requires local planning authorities who are in the process of establishing an evidence base for their development plans to undertake, and keep under review, an Employment Land Review which is relevant to the "prevailing market conditions". 

The Policy also provides that "where development plan policies are outdated or superseded local planning authorities should give them decreasing weight in favour of other material considerations, such as national planning policy" when determining planning applications.

The Welsh Government said in a statement that the policy aimed to get local authorities to take a "whole economy" approach, rather than focusing on traditional and restrictive employment land use.

“The planning system is vital to the wellbeing of Wales, and that is why we need a system that gives full consideration to the social, economic and environmental impact of any development," said Welsh Environment Minister John Griffiths. “This new policy is about balance. It recognises that jobs and growth are essential to Wales’ economy, but also recognises that we must never lose sight of the other factors that are vital to people’s long term quality of life."

“The policy calls on local planning authorities to establish a robust evidence base of the economic characteristics of their particular areas and to use this evidence when making decisions and when developing their local development plans. This should help ensure decision making is based on a realistic assessment of demand," Griffiths said.

“The policy also asks local authorities to consult their Economic Development Officers on proposals which have the potential to generate or retain jobs locally so that the potential benefits of such developments can be fully understood. The changes to the policy are based on an independent report about how we can use the planning system to best support a sustainable Welsh economy, and I am confident that they are right for Wales,” he said.