Britain’s manufacturers have urged the Government to accelerate and deepen reforms to the planning system, warning that failure to act risks undermining economic growth, industrial strategy ambitions and the transition to net zero.
The call comes in a new report from
Make UK, which paints a stark picture of widespread dissatisfaction among manufacturers with what it describes as a system not fit for purpose.
According to the organisation, the current planning regime is overly complex, inconsistent and costly, with delays and uncertainty acting as a significant deterrent to investment.
Make UK argues that, unless ministers go further and faster than current proposals set out in the Planning and Infrastructure Bill, the UK risks missing opportunities to boost productivity, drive regional development and support decarbonisation.
Faye Skelton, head of policy and campaigns at Make UK, argues the issues highlighted in the report point to a fundamental disconnect between policy ambition and lived experience in industry.
She said: “In the context of an industrial strategy focused on productivity, regional growth and the energy transition, ensuring the planning system supports manufacturing investment is essential. Yet, the current system is not fit for purpose and is too often a source of friction rather than a driver of growth.
“While Government has recognised many of these challenges and is pursuing a significant programme of planning reform, the experience of manufacturers suggests a gap between policy intent and reality. Many still encounter a system that is slow, cumbersome and difficult to navigate. If Government is to deliver on its number one mission to boost growth it must now go further and faster, ensuring planning shifts from being a barrier to a driver.”
The findings underline the scale of concern across the sector. Almost half of manufacturers surveyed (46%) believe the planning system is hampering the UK’s economic potential, while just 14% feel it actively supports growth. Meanwhile, 43% say planning delays are directly slowing their ability to invest or expand operations.
Make UK says this demonstrates that planning is not merely influencing investment decisions but actively holding them back. Among the most significant obstacles cited are the complexity of regulations (48%), high compliance costs (44%) and inconsistent decision-making across local authorities (38%).
These issues combine to create what the organisation describes as a “triple threat” — a system that is difficult to navigate, expensive to engage with and unpredictable in outcome. Unsurprisingly, a clear majority of manufacturers (65%) say more coordinated regional planning would make expansion easier, while over half (53%) point to lower application and compliance costs as a key factor in unlocking investment.
Environmental requirements are also emerging as a growing source of friction. More than half of respondents (54%) report that such requirements at least occasionally create obstacles, with 14% saying this occurs frequently. While industry supports robust environmental protections, Make UK argues that current processes often add unnecessary delay and complexity, particularly for sectors facing stricter regulatory scrutiny. It highlights high-profile examples of cost escalation, including the estimated £100 million spent on a tunnel in the HS2 project designed to protect bat habitats.
In response, Make UK is calling for a range of reforms, including stronger strategic and mayoral powers to better align planning decisions with industrial priorities and infrastructure needs. It also wants strategic manufacturing developments to be fast-tracked, particularly those supporting productivity, supply chain resilience and net zero goals.
Other proposals include introducing a Manufacturing Growth Test to ensure reforms genuinely reduce cost and complexity, establishing clearer national rules to eliminate regional inconsistencies, and simplifying planning applications to make the system more efficient and predictable.
The survey, conducted between 20 March and 10 April among 196 companies, underscores the urgency of reform for a sector that remains central to the UK’s economic ambitions.