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Osborne seeks to relax planning laws Osborne seeks to relax planning laws
(35 minutes later)
Automatic planning permission would be granted on many brownfield sites in England in an attempt to boost economic productivity, under government plans.Automatic planning permission would be granted on many brownfield sites in England in an attempt to boost economic productivity, under government plans.
Ministers would also get new powers to make disused land available and would relax rules on extensions in London.Ministers would also get new powers to make disused land available and would relax rules on extensions in London.
Chancellor George Osborne said reforms were needed because Britain had been "incapable of building enough homes".Chancellor George Osborne said reforms were needed because Britain had been "incapable of building enough homes".
It comes after the government was warned its Budget plans would cut investment in new homes.It comes after the government was warned its Budget plans would cut investment in new homes.
The proposed changes feature in a 90-page document to address Britain's productivity record, to be released on Friday.The proposed changes feature in a 90-page document to address Britain's productivity record, to be released on Friday.
It also features proposals on higher education, transport and trade.It also features proposals on higher education, transport and trade.
'Upwards extensions''Upwards extensions'
BBC political correspondent Ross Hawkins said Treasury sources argue house-building boosts productivity as it is helpful to have workers living close to their workplaces.BBC political correspondent Ross Hawkins said Treasury sources argue house-building boosts productivity as it is helpful to have workers living close to their workplaces.
Housing is just one part of a broad plan, they say.Housing is just one part of a broad plan, they say.
The term brownfield refers to land that has previously been built on.The term brownfield refers to land that has previously been built on.
Under the plans, which will need to be approved by MPs, automatic planning permission would be granted on all "suitable" brownfield sites under a new "zonal" system, the Treasury said.Under the plans, which will need to be approved by MPs, automatic planning permission would be granted on all "suitable" brownfield sites under a new "zonal" system, the Treasury said.
Another change would see ministers seek to scrap the need for planning permission in London for developers who wanted to extend buildings to the height of neighbouring properties.Another change would see ministers seek to scrap the need for planning permission in London for developers who wanted to extend buildings to the height of neighbouring properties.
There would also be new sanctions for councils that do not deal with planning applications quickly enough, and the government would be able to intervene in councils' local development plans.
This week the Office for Budget Responsibility warned that government plans for rent reductions in social rented homes would hit housing investment.This week the Office for Budget Responsibility warned that government plans for rent reductions in social rented homes would hit housing investment.
The OBR said 14,000 fewer affordable homes would be built and cut its forecast for investment in private housing by 0.7%.The OBR said 14,000 fewer affordable homes would be built and cut its forecast for investment in private housing by 0.7%.
It also said house prices were expected to rise compared with both consumer prices and household incomes.It also said house prices were expected to rise compared with both consumer prices and household incomes.
A Treasury source said the OBR assessment considered only the impact of the Budget and did not reflect the new policy.A Treasury source said the OBR assessment considered only the impact of the Budget and did not reflect the new policy.
In his Mansion House speech in June 2014, Mr Osborne said 200,000 permissions for new homes would be made possible by 2020 as councils put in place orders to provide sites with outline planning permission.In his Mansion House speech in June 2014, Mr Osborne said 200,000 permissions for new homes would be made possible by 2020 as councils put in place orders to provide sites with outline planning permission.
Housing ladderHousing ladder
The Treasury said the new plan goes further - in effect stripping away the need for any planning permission in some brownfield locations.The Treasury said the new plan goes further - in effect stripping away the need for any planning permission in some brownfield locations.
The Conservative manifesto pledged to "ensure that 90% of suitable brownfield sites have planning permission for housing by 2020".The Conservative manifesto pledged to "ensure that 90% of suitable brownfield sites have planning permission for housing by 2020".
In a statement released before the publication of the productivity plan, Mr Osborne said: "Britain has been incapable of building enough homes.In a statement released before the publication of the productivity plan, Mr Osborne said: "Britain has been incapable of building enough homes.
"The reforms we made to the planning system in the last parliament have started to improve the situation: planning permissions and housing starts are at a seven-year high."The reforms we made to the planning system in the last parliament have started to improve the situation: planning permissions and housing starts are at a seven-year high.
"But we need to go further and I am not prepared to stand by when people who want to get on the housing ladder can't do so.""But we need to go further and I am not prepared to stand by when people who want to get on the housing ladder can't do so."