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Planning Bill Moves Forward as AI Tool Set to Modernise UK Housing System

Written by: Mary-Anne Bowring 07/08/2025
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What does The Planning and Infrastructure Bill aims to do?

The Planning and Infrastructure Bill returned to Parliament for its Second Reading, marking a significant step in the UK government’s mission to drive economic growth and accelerate housing development. The legislation is a central part of the government’s broader Plan for Change, which includes the commitment to build 1.5 million homes and expand the UK’s clean energy capacity.

As legislation, the Planning and Infrastructure Bill aimsto reform the UK's planning system and accelerate the delivery of new homes and critical infrastructure. It aims to speed up and streamline the planning process, reduce legal challenges, and encourage strategic planning through Spatial Development Strategies as well as to improve environmental outcomes, enhance community benefits, promote strategic planning, reform compulsory purchase process, modernise local planning committees, set up a Nature Restoration Levy, create Environmental Delivery Plans (EDPs), as well as a National Scheme of Delegation.

How Artificial Intelligence (or AI) is going to reform the UK Planning System

As part of this wide-reaching effort, a new artificial intelligence tool is also being developed to support local councils in modernising planning systems. This digital solution aims to replace outdated paper records and scanned documents with high-quality, machine-readable data. Currently in early testing, the tool has the potential to significantly reduce the time it takes to digitise old planning records, from one to two hours of manual work to under a minute. It will help remove bottlenecks in local planning departments, enabling faster decision-making on applications for housing and infrastructure projects.

The Planning and Infrastructure Bill seeks to speed up planning approvals by removing unnecessary delays and administrative hurdles. The legislation introduces a national scheme of delegation, which will allow planning officers to make quicker decisions without relying on lengthy committee discussions. These measures are designed to streamline the approval of developments such as windfarms, railways, and reservoirs.

How The Planning and Infrastructure Bill will reform compulsory land purchase

The The Planning and Infrastructure Bill also proposes reforms to the rules around compulsory land purchase. The aim is to make land acquisition for public projects more efficient while avoiding excessive compensation costs. This key change is expected to support the creation of new towns and enable the progress of large-scale developments currently slowed by legal and financial obstacles. In addition the legal process for challenging major infrastructure projects will be tightened to further reduce delays.

By limiting the number of times decisions can be brought before the courts, the government hopes to reduce meritless objections that hold back critical works. These legal streamlining measures will help advance vital infrastructure initiatives across the UK. The AI tool under development will work alongside these reforms by tackling inefficiencies at the local level. Many councils still rely on physical documents and low-quality digital scans, slowing the planning process and contributing to application backlogs.

How Artificial Intelligence or AI will speed up access to UK Planning records

The AI tool will convert handwritten notes, old maps, and PDFs into accurate, shareable digital data. It will help boost the availability of reliable planning information and allow local authorities to process applications more swiftly. This new technology is being developed through collaboration between the Department for Science, Innovation and Technology and the Ministry of Housing, Communities and Local Government.

The tool is called Extract and is part of the government's Incubator for AI programme. Its potential use extends beyond planning departments, as location-based data also supports public sector decision-making in housing, healthcare, education, and transport.

How The Planning and Infrastructure Bill will improve nature through a new Nature Restoration Fund

The government has made clear that housing growth must be balanced with environmental protections. A new Nature Restoration Fund will be introduced to ensure builders meet ecological standards without slowing project delivery. This fund will help align development with environmental obligations, contributing to a greener and more sustainable growth strategy.

Households near new transmission lines may be eligible for energy bill discounts to encourage community support for energy infrastructure. This incentive recognises the local impact of such projects while supporting national efforts to boost energy capacity.

Clean Energy and The Planning and Infrastructure Bill 2025

Clean energy projects that are approved and construction-ready will be prioritised for connection to the grid under a new ‘first ready, first connected’ approach.

The government has pledged to approve at least 150 major infrastructure projects during the current Parliament, more than twice the number completed in the previous term.

Projects, including the Immingham Green Energy Terminal, have already been confirmed. This momentum is expected to continue as planning systems become more efficient and better equipped with digital tools.

A longer-term Infrastructure Strategy is also being developed to guide public and private investment over the next decade. This plan will focus on delivering essential services such as housing, schools, hospitals, and transport infrastructure, using a combination of government support and private sector funding.

The updated National Planning Policy Framework and a review of statutory consultee roles will further equip local councils and developers with the tools to build where homes and infrastructure are most urgently needed.

These combined efforts represent a fundamental shift towards a more agile, responsive, data-driven planning system.

Integrating AI in planning marks a technological leap forward for local authorities. As the Planning and Infrastructure Bill moves through Parliament, the digital transition being tested today could soon play a key role in achieving the country’s housing and infrastructure goals, helping to deliver lasting economic growth and energy security.

FAQs

How will AI help speed up planning decisions?

The new AI tool will convert old, scanned, or handwritten planning documents into high-quality digital data in under a minute. It will allow councils to process applications more quickly and reduce backlogs.

What is the purpose of the Planning and Infrastructure Bill?

The Bill aims to streamline planning processes, support the construction of 1.5 million homes, and accelerate infrastructure delivery. The result will be a major boost to economic growth while maintaining environmental standards.

Will the AI tool only be used in housing planning?

No. While its first use is in digitising planning records, the AI tool may be applied across other public services that rely on location-specific data, such as healthcare, education, and transport.



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