FSB: Fast track for small business planning applications will be a key driver for growth
FSB report outlines how the planning system should support small firms, ahead of the National Planning Policy Framework (NPPF) consultation
Small firms must be able to fast-track their planning applications so they can grow their business and benefit the economy, the Federation of Small Businesses (FSB) said in a new report.
The FSB believes that unless small firms are able to cut through the bureaucracy as part of the overhaul of the planning system, it will just be yet another barrier in the way of the country’s economic growth.
Small firms might only want to make minor changes to their business, but with banks still not lending and contracts still being paid late, it all adds up and prevents small businesses from growing and so too the country.
New statistics from the FSB ‘Voice of Small Business’ survey panel show that more than half of small businesses of the 1,700 small firms responding to survey find planning applications overly complex and two fifths find the process far too costly.
Just over half (53%) of small firms that have applied for planning permission over the past two years said that the rules and process were overly complex, and 38 per cent said that the process had higher costs than they had anticipated.
The FSB is concerned that small businesses are put off from investing time and money into expanding because of the concern about having to go through a drawn-out, complicated planning application.
Small firms tend to submit applications for minor changes, yet still have to go through a long and costly process. In a new report, ‘Small business and infrastructure: Planning’, the FSB is calling on the Government to ensure there is a fast track for small business planning applications to enable small firms to grow and expand, which is needed to really grow the economy.
The survey showed that small businesses that have applied for planning permission are more likely to apply for a change of property use (30%), a new build (26%), extension (24%) or minor improvement (14%). Only one per cent of applications submitted by small firms are for large developments.
Government has listened to the FSB and small firms on the role of businesses in neighbourhood planning – agreeing on the importance of small businesses being represented on neighbourhood forums – but urges the Government to go further still to ensure that small businesses are encouraged to submit their planning applications needed to grow their business.
The FSB welcomes the proposed ‘presumption in favour of sustainable development’ – which will run through the NPPF and aims to create a planning regime that will encourage growth – but urges the Government to ensure that the presumption promotes a system that is free of unnecessary delay, and does not favour big business at the expense of smaller firms. The FSB would also like to see safeguards in the NPPF to protect existing trading centres, such as the high street.
The FSB is calling the Government to:
Make the planning system clearer, easier and cheaper for small firms, and change the process of planning applications for minor building works to ensure that small firms are encouraged to submit planning applications to grow or diversify their business
Work closely with small businesses to ensure that the measures introduced as part of the new planning reforms properly address the barriers small businesses face
Adopt a robust ‘town centre first’ policy in the new National Planning Policy Framework
Ensure that the new ‘presumption in favour of sustainable development’ is streamlined and doesn’t favour big businesses at the expense of small firms, and is has a clear definition of sustainable development
John Walker, National Chairman, Federation of Small Businesses, said:
“Costly and complicated planning systems aren’t a new problem for small businesses, but these figures show that the application process is still far too costly and complex for them. Small firms tend to want to make minor changes that require time consuming and expensive planning applications, when these small alterations can enable them to expand and diversify and so stimulate much needed growth in the economy.
“It is small businesses that have the potential to drive the economy, but only if their environment is conducive to growth. Providing a fast track for small business planning applications, that make it cheaper and easier, would provide the incentives they need to grow their businesses. The Government is going through huge changes with planning at the moment, so it is vital the small business voice is heard.”
ENDS
Notes to Editors
The FSB is the UK's leading business organisation with more than 200,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk
The survey is based on 1,739 responses from the February 2011 FSB ‘Voice of Small Business’ Survey Panel of FSB members which took place between 7 and 18 February 2011. For full results, go to www.fsb.org.uk/fsb-survey-panel
To view a copy of the report, ‘Small business and infrastructure: Planning’, please go to www.fsb.org.uk/policy/publications This report is part of a series of reports tackling infrastructure in the UK from the small business viewpoint
ISDN facilities are available for broadcast media interviews
Contacts
Andrew Cave, Chief Spokesperson: 07917 628991
Sophie Kummer: 020 7592 8128/ 07917 628998 sophie.kummer@fsb.org.uk
Prue Watson: 020 7592 8121 / 07825 125 695 prue.watson@fsb.org.uk
For regional FSB contacts please go to www.fsb.org.uk/regions
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