The UK construction sector stands to benefit from sweeping planning reform under the government’s Planning and Infrastructure Bill, with new analysis estimating a potential £7.5 billion boost to the economy over the next decade.

Published on 6 May, the Bill’s impact assessment outlines how measures to streamline the planning system could speed up delivery of new homes, transport links, and clean energy infrastructure. The government says the changes will cut delays, lower development costs, and increase certainty for investors and contractors—particularly across housing and civil engineering projects.

An assessment on the Bill’s impact comes in the wake of news that UK construction growth has stagnated in Q1 of 2025.

The reforms aim to support the construction of 1.5 million new homes, fast-track major road and rail schemes, and unblock stalled energy infrastructure projects. Additional measures, such as overhauling the pre-application process for Nationally Significant Infrastructure Projects (NSIPs), are expected to bring further benefits. Although not included in the core impact assessment, these amendments could contribute an extra £1 billion in economic value during the current Parliament.

The Bill builds on recent updates to the National Planning Policy Framework (NPPF), which the Office for Budget Responsibility (OBR) says will help raise housebuilding to its highest levels in more than 40 years, delivering a projected £6.8 billion uplift by 2029/30.

For developers and contractors, the legislative changes could reduce planning risk, shorten timelines, and create a more favourable environment for long-term infrastructure investment. The government has committed to making at least 150 decisions on major projects before the next general election, with 17 already approved.

Angela Rayner, Deputy Prime Minister and Housing Secretary, said:

“Getting Britain building will not only boost economic growth but ensure we deliver the homes and infrastructure working people deserve. This landmark pro-growth Bill will get spades in the ground and the foundations laid for a new generation of homes, as we deliver on our Plan for Change.”

The Regulatory Policy Committee gave the impact assessment a green rating, confirming its robustness and alignment with economic analysis standards.

Industry observers will be watching closely as the Bill progresses through Parliament, particularly to assess how reforms are implemented at the local level—where planning capacity and consistency often determine project outcomes.