The Planning and Infrastructure Act 2025 received Royal Assent on 18 December 2025. The government said some powers took effect immediately and that ministers will set out when the remaining reforms will start, describing the Act as central to its targets of 1.5 million new homes and 150 decisions on major infrastructure projects.
Corporate INTL Newsroom · Construction
Planning and Infrastructure Act 2025 Becomes Law: What Changes for Developers
By The Corporate INTL Newsroom · 22 December 2025
Major infrastructure
The Act reforms the regime for nationally significant infrastructure projects. Legal challenges that a court finds totally without merit will be limited to one attempt rather than three, and an overhaul of the pre-application stage is expected to cut timelines for major projects by 12 months on average. Grid connections will move from a first come, first served approach to first ready, first connected, and reservoirs built by companies other than water companies can be treated as nationally significant infrastructure.
The Secretary of State can create a scheme giving electricity bill discounts of up to £2,500 over 10 years to people living within 500 metres of new pylons. The Act also simplifies approval for electric vehicle chargers on public roads.
Nature Restoration Fund
The Act creates a Nature Restoration Fund operated by Natural England. As Natural England explained, once an environmental delivery plan is in place for an area, developers can pay a levy to meet their obligations on protected sites and species instead of carrying out separate assessments for each development. Each plan can last up to 10 years, must pass an overall improvement test, is subject to public consultation and needs approval by the Secretary of State. The first plans will cover nutrient neutrality catchments.
Local planning
Planning committees will focus on the most significant developments, development corporations gain additional powers for large projects including new towns, councils can set planning fees to cover their costs, and spatial development strategies will span several local authorities.
What it means for the sector
Housebuilders, infrastructure developers, contractors and their funders should expect the Planning and Infrastructure Act 2025 to change programme timings and consenting risk, but much depends on secondary legislation and on how quickly environmental delivery plans are prepared. The government estimates the Act could add up to £7.5 billion to the economy over the next decade.
Sources
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