National Planning Framework 4: final business and regulatory impact assessment

This final business and regulatory impact assessment accompanies National Planning Framework 4. It considers the potential costs and benefits to businesses and other stakeholder arising from the National Planning Framework 4 Revised Draft.


Appendix A: Analysis of Benefits and Costs

Spatial Strategy
Proposed policy change Sector and groups affected Benefits Cost
Spatial Principles and Themes
Part 1 of NPF4 sets out our spatial strategy for Scotland to 2045, identifying: spatial principles and 3 themes. The spatial priorities feed into the three themes sustainable places, liveable places, productive places. All stakeholders involved in delivering development. Positive outcomes from development, contributing to the national outcomes and statutory outcomes for the NPF. The cost of planning policy changes have been considered and balanced against their overall contribution to these wider policy themes/ principles.
National Developments
Eighteen national developments are put forward in NPF4 to support the delivery of the spatial strategy. These are significant developments of national importance and can be single, large scale projects, or collections and networks of several smaller scale proposals. 8 of the national developments in NPF4 are new/ additional from those in NPF3. Lead partners and planning authorities involved in delivering national developments.

Designation in NPF4 establishes the need for these developments, so the principle of the development should not be considered again in the consenting process.

This provides a level of certainty for developers and businesses, which can support investment in places and removes cost and time in proving the case in principle. It reduces considerations in the consenting process.

Additional costs may be associated with progressing national development proposals through the planning system e.g. where the development is consented through the planning system, the prospective applicant is required to undertake additional consultation before applying (pre-application consultation) for planning permission. This has been mitigated where appropriate by ensuring the classes of development included in the description are proportionate and avoid adding process to relatively minor developments.

In some consenting regimes further procedures may be triggered by national development status.

These procedures are already set in planning and other legislation. NPF just designates those developments the procedures apply to.

National Planning Policies

The full policies are in NPF4, available at www.transformingplanning.scot

Sustainable Places
Proposed policy change from SPP to NPF4 Sector and groups affected Benefits Cost
Tackling the Climate and Nature Crises
A new policy responding to the twin climate and nature crises, requiring local development plans to address the crises and for significant weight to be given to the crises in the consideration of development proposals. All stakeholders involved in delivering development.

Ensures that greater weight will be given to climate change as a crucial factor influencing decision making on future land use. Positive effects for nature are secured from development, helping to address the global challenge of biodiversity loss in line with the new statutory outcome for NPF4.

New, clear policy has potential to offer a cost benefit by reducing uncertainty in the planning and applications process for developments which will reduce emissions and promote nature.

Designing proposals to meet development plan strategies for reduced emissions, climate change adaptation, nature recovery and restoration may need new approaches and development costs may differ to current approaches. The policy intent is to ensure adequate weight given to these considerations rather than specifically requiring complex or technical assessments to support this specific policy. Planning authorities may have to consider evidence, which would be provided by the applicant, in keeping with any policy change in planning.
Climate Mitigation and Adaptation
Supporting minimisation of development related emissions and help adapt to current and future impacts of climate change. All stakeholders involved in delivering development. Works towards meeting net-zero targets, which helps reduce long-term risks from climate change and supports a just transition to net zero. Works towards improving community and place resilience, and therefore to risks from climate change, supporting place viability in the long term.

Potential for some additional costs to planning authorities from understanding the likely emissions generated by the plan approach and the climate risks and adaptation approaches pertinent to the plan area. Some developers/ designers may incur additional costs in minimising lifecycle greenhouse gas emissions.

Over time emissions minimal/net zero designs will become the routine approach and policy is designed to be flexible ahead of a single agreed standard methodology emerging.

Some developers/ planning authorities may find additional costs in preparing adapted and adaptable designs. Some costs for developers and planning authorities in up-skilling staff for emissions minimisation and adaptation. Some costs for planning authorities in appraising reports/ approaches related to emissions minimisation and adaptation.

Biodiversity
A new policy responding to the nature crisis, requiring plans and proposals to contribute to the enhancement of biodiversity. All stakeholders involved in delivering development. Positive effects for biodiversity are secured from development, helping to address the global challenge of biodiversity loss in line with the new statutory outcome for NPF4.

New requirements to conserve, restore and enhance biodiversity may introduce additional evidence requirements for developers which will also require consideration by planning authorities. New requirements may also lead to additional costs for developers relative to the impact, and scale of the development.

Appropriate Assessment has been removed as a trigger from part (b) of this policy in response to consultation responses highlighting that this can be small scale and it would have been disproportionate to include. This removal may lead to cost savings for such applications.

Natural places
An updated policy on natural places which aims to protect the natural environment, including important natural assets and protected species, biodiversity and landscape, including protected sites and species. All stakeholders involved in delivering development. Continues to ensure that natural assets are managed in a sustainable, regenerative way so they can continue to provide the essential benefits and services upon which people and businesses rely. A requirement around wild land impact assessments for development on wild land may result in additional costs including for some businesses although this is not a new concept introduced by the policy, but currently undertaken in accordance with existing guidance for significant development proposals affecting wild land areas.
Soils
An updated policy to protect carbon rich soils, restore peatlands and minimise disturbance to soils from development. Peat extraction industry, whisky industry, housebuilders, renewables, low-carbon and net-zero tech industries, planning authorities, key agencies, horticulture industry. Ensures greater protection is given to soils, peatland, carbon rich soils and priority peatland habitats in recognition of the role they play in carbon sequestration and climate change adaptation. The greater protection afforded to peatland may result in additional costs for certain businesses. For the horticulture industry this may be for sourcing alternative growing mediums.
Forestry, woodland and trees
An updated policy on forestry, woodland and trees which requires local development plans to link with Forestry and Woodland Strategies, and does not support any loss or adverse impact on ancient woodland, ancient or veteran trees, or adverse impacts on native woodlands, hedgerows and individual trees of high biodiversity value. Proposals that enhance, expand and improve tree and woodland cover are supported. All stakeholders involved in delivering development. Recognises the role that trees and woodland will play in helping to achieve net zero by 2045 through sequestering and storing carbon and providing essential ecosystem services for nature, people and the economy. May result in additional costs for businesses where policies lead to changes to proposals that incur additional development costs.
Historic places and assets
An updated policy on historic assets and places aims to safeguard valued historic assets and places including listed buildings, conservation areas, scheduled monuments, historic gardens and designed landscapes, battlefields, and World Heritage Sites. All stakeholders involved in delivering development. Ensures appropriate recognition is given to the need to protect and enhance historic environment assets and places in recognition of their important cultural, social, and economic value. Potential for costs for assessment, but changes in relation to current practice are unlikely to result in significant additional costs.
Green belts
An updated policy on green belts aims to encourage, promote and facilitate compact urban growth and use the land around our towns and cities sustainably. It limits the circumstances where development on green belt land can be acceptable to specific uses. All stakeholders involved in delivering development. Ensures continued recognition of the role of green belts as a settlement management tool around Scotland's towns and cities. Policy is updated from SPP but changes are unlikely to result in significant economic costs.
Brownfield, vacant and derelict land and empty buildings
An updated and expanded policy on brownfield land and vacant and derelict land and empty buildings which encourages re-use of land and buildings and discourages greenfield development unless supported by the local development plan. All stakeholders involved in delivering development. Greater emphasis on using brownfield land and buildings has the potential to deliver significant benefits including sustainable, inclusive growth and reduced emissions. There will likely also be wider health benefits as there is a potential relationship between poor health, inequality and disadvantage, and proximity to vacant and derelict land.

The shift towards a greater emphasis on using brownfield land (including vacant and derelict land), including remediation, may have implications on the locational choices of some businesses and the development sector.

Revised policy from SPP avoids introducing substantial additional tests for applicants.

Coastal Development
An updated policy to provide a framework for protecting coastal communities and assets. Developments will consider adaptation to future climate impacts, and will be supported in areas of developed shoreline provided coastal protection measures are not required. All stakeholders involved in delivering development. Policies confirm how the future development of coastal areas and communities can be achieved in a way that helps them adapt to long term challenges, such as climate change. Policy is updated from SPP but changes are unlikely to result in significant economic costs.
Energy
Updated policies on energy to encourage, promote and facilitate all forms of renewable energy development. Renewables industries, planning authorities, key agencies. Ensures that the planning system continues to support the expansion of renewable, low-carbon and net-zero energy technologies as a key contributor to net-zero emissions by 2045. Added clarity in policy and refreshed suite of key considerations has potential to offer a cost benefit by reducing uncertainty in the planning and applications process for renewables, low carbon and net zero technologies.
Zero Waste
An updated and expanded policy on zero waste, requiring plans to identify locations for new infrastructure and supporting development in line with the waste hierarchy. Landfill and energy from waste proposals will only be supported in very limited circumstances. Waste management industries, planning Authorities, key agencies. Ensures the planning system continues to support development which reflects the circular economy and waste hierarchy, prioritising the reduction and re-use of materials, and facilitating the delivery of new infrastructure required to achieve this. No substantial additional costs are likely to arise for developers from the policy itself and some elements of the policy may in fact, given LDPs role to identify appropriate locations for new waste management infrastructure, reduce the likelihood of substantial investment being wasted in applications which may not be granted consent.
Sustainable transport
An updated policy on sustainable transport and active travel. This aims to reduce the need to travel by discouraging applications for significant travel generating uses at locations which rely on the car. Provision of active travel is actively encouraged. All stakeholders involved in delivering development. Refocuses existing transport policies to specifically draw out how land use planning can build in sustainable travel choices. There may be additional costs to developers around some of the updated policies, such as those relating to active travel, although such requirements are likely to already be required by existing local development plan policies, to varying degrees. Requirements of specific development proposals will vary on a case by case basis and may be offset depending on other changes influencing the development economics of a site, e.g. densities, lower car parking etc.
Liveable Places
Proposed policy change from SPP to NPF4 Sector and groups affected Benefits Cost
Design, quality and place
An updated policy on design, quality and place requiring plans and proposals to reflect the six qualities of successful places. All stakeholders involved in delivering development. Continues to ensure that place making and quality development are key outcomes for the planning system. Policy is updated from SPP but changes are unlikely to result in significant economic costs.
Local living and 20 minute neighbourhoods
A new policy on local living, requiring plans and proposals to support the principle of 20 minute neighbourhoods. All stakeholders involved in delivering development. Ensures that people have access to everyday local infrastructure so that the need to travel is reduced and the places where they live and work are more resilient and sustainable. These policies will impact on locational choices for development and are unlikely, in themselves, to generate significant costs.
Quality homes
An new approach to providing more quality homes. This requires authorities to identify a Local Housing Land Requirement which is expected to exceed the 10 year Minimum All-Tenure Housing Land Requirement. Housebuilding industry, registered social landlords, housing associations, planning authorities, key agencies, built environment professionals. NPF4 takes a new approach to planning for new homes. It aims to address issues of current policy, and limit resources being focused on debates over calculations and methodologies of housing numbers. It looks to support delivery of homes over a longer timeframe of 10 years, enabling a more co-ordinated and considered approach, aligned with key drivers of social justice, infrastructure provision, local living and climate change. Resource capacity in future should therefore focus on the quality, location and delivery of new homes and places.

Some housebuilders raised concerns about possible impacts relating to changes to existing housing policies and to other policy areas, including net zero and brownfield land. The latter are addressed in relation to those specific policies.

The housebuilding industry highlighted potential costs in relation to local infrastructure, job opportunities and economic output.

Issues relating to skills and resourcing of the public sector to deliver were also raised in consultation responses. It should be noted, however, that the current policy approach generates significant resource requirements for planning authorities.

Rural homes
New policy on rural housing to give greater clarity on the overall intent of supporting vibrant and sustainable rural communities. Housebuilding industry (SMEs), registered social landlords, housing associations, built environment professionals operating in rural areas, planning authorities in rural areas key agencies. New approach is clearer on the overall intent of supporting vibrant and sustainable rural communities, and to support the outcome on increasing the population of rural areas of Scotland. Its close link with housing policy provides flexibility to rural circumstances. Supports business continuity through providing for retirement succession and worker accommodation as needed. Policy is updated from SPP but changes are unlikely to result in significant costs.
Infrastructure First
The infrastructure first approach is a new policy requiring infrastructure considerations to be put at the heart of planning decisions. All stakeholders involved in delivering development. Puts in place an infrastructure-first approach, involving infrastructure providers, developers and other public bodies to ensure an integrated and coherent outcome-based approach to land use planning. Supports the efficient use of infrastructure and identification of infrastructure needs of communities. Supports a better understanding of infrastructure needs and costs. Alignment with the infrastructure investment hierarchy will ultimately reduce costs to the public and private sectors. As the infrastructure first approach seeks the front loading of infrastructure information, this may have cost implications for planning authorities. However, it is expected that they would be supported by input from stakeholders who are responsible for infrastructure data. Good practice and skills development, as supported by the delivery programme, will also mitigate the impact on planning authorities.
Heat and cooling
An updated and expanded policy on heat and cooling requiring LDPs to take into account the area's Local Heat and Energy Efficiency Strategy. Proposals should be designed to connect with existing or future heat networks. Developers and housebuilders, planning authorities, key agencies. Ensures that the planning system supports development that connects to heat networks so that they can support net zero emissions from heating and cooling buildings and adapt to changing temperatures. Additional skills and resources may be required to support the assessment of technical proposals. Recognising this, the Scottish Government has supported local authorities, such as through an initial LHEES pilot scheme. Local authorities are being paid £75k as part of their block funding until 27/28 to support work on LHEES.
Blue and green infrastructure
An updated policy on blue and green infrastructure, requiring assets and networks to be safeguarded and seeking opportunities for expansion, enhancement and connections. Long-term maintenance of blue and green infrastructure are to be addressed in development proposals. Developers and housebuilders, RSLs, planning authorities, key agencies, local authorities, parks authorities, land owners. Ensures that the planning system continues to protect and enhance provision of and access to blue and green infrastructure, delivering multiple functions including flood prevention, climate mitigation, nature restoration, biodiversity enhancement as well as providing opportunities for play and recreation.

No significant new costs arising from policy given coverage of the issues in existing local development plan policies, to varying degrees.

Long term maintenance responsibilities may entail costs to land owners, local authorities, developers (including housing associations) and/or residents.

Play, Recreation and Sport
A new policy created to encourage, promote and facilitate spaces and opportunities for play, recreation and sport. Developers and housebuilders, RSLs, planning authorities, key agencies, local authorities, parks authorities, land owners. Ensure the planning system continues to protect outdoor sports facilities as required and actively promote the provision and enhancement of play and recreation opportunities in the natural and built environments for people of all ages, recognising the benefits they bring to people and communities in their health and wellbeing.

Some additional capital costs may arise from policy round provision for play opportunities where developments are occupied or frequented by children and young people.

Long term maintenance responsibilities may entail costs to land owners, local authorities, housing associations and/or residents.

Flood risk and water management
An updated policy on flood risk and water management which aims to avoid developments in areas of flood risk and to strengthen future resilience by reducing the vulnerability of existing and future development to flooding, whilst encouraging the use of natural flood risk management to provide wider benefits for people and nature. Developers and housebuilders, planning authorities, key agencies. Ensures that the planning system strengthens future resilience to flood risk by reducing the vulnerability of existing and future development to flooding. This will essentially prevent significant costs arising where development is located in unsustainable locations.

This provides a clearer and more consistent approach to planning policy on flood risk, rather than introducing an new concept.

There may be some cost implications for developers associated with meeting design criteria that are needed to avoid flood risk.

Planning services will need staff to continue to ensure that technical reports, such as drainage impact assessments and flood risk assessments, can be evaluated. Specialist skills are available within key agencies who are required to input to the planning process as relevant.

Health and Safety
A new policy supporting health, wellbeing and protection of people and places from environmental harms and safety hazards. Developers and housebuilders, planning authorities, key agencies. Ensures that the planning system supports, and has the information to support, health, wellbeing and safety, and strengthens the resilience of communities.

Potentially minor costs of local authority partnership working with agencies as part of the local development plan process.

Health impact assessment, noise, and air quality assessments and designs that account for suicide risk may generate costs for applicants although they noise and air quality impact assessments are already commonly required for relevant developments.

Digital infrastructure
An updated policy on digital infrastructure which requires proposals to incorporate appropriate, universal and future-proofed digital infrastructure. Construction industry, telecommunications and broadband providers, planning authorities. Ensures that the planning system continues to support the roll-out of digital infrastructure across Scotland, ensuring that policies recognise the importance of future-proofing infrastructure provision whilst addressing impacts on local communities and the environment. No significant change from existing policy so no additional costs envisaged.
Productive Places
Proposed policy change Sector and groups affected Benefits Cost
Community wealth building
A new policy on community wealth building, including a requirement for national and major developments to contribute to community wealth building. All stakeholders involved in delivering developments. Ensures that the planning system considers how major developments can provide added value to communities.

Potential for additional costs to developers delivering national and major developments. Policy approach is designed to be proportionate rather than introducing a substantial new assessment.

In addition, requirements to contribute to community wealth building objectives are likely to involve better targeting of investment rather than increasing development costs.

Business and Industry
An updated policy on business and industry requiring development plans to identify land for business and industry in a way which supports a greener, fairer and more inclusive wellbeing economy. Supporting proposals for home-working, live-work units and micro-businesses. Developers involved in delivering developments for the business sector, planning authorities, key agencies. Ensures that the planning system supports new and expanded businesses and investments, stimulates entrepreneurship and promotes alternative ways of working in order to achieve a green recovery and build a wellbeing economy. Proposals to support home-working, live-work units and micro-businesses may have positive benefits for small businesses. No significant change from existing policy so no additional costs envisaged.
City, town, local and commercial centres
An updated policy on city, town, commercial and local centres which aims to support lower carbon urban living. The policy supports development which diversifies and strengthens city, town and local centres and existing commercial centres, whilst seeking to avoid the clustering of certain developments that can have negative impacts on communities. Retail and commercial sectors housebuilders, planning authorities, key agencies. Ensures that developments are directed to the most sustainable locations to provide communities with easy access to the goods and services they need, whilst supporting the need for urban centres to diversify as a result of the challenges that they are facing.

Applicants for out of city and town centre proposals will be required to provide a town centre first assessment, costs may vary depending on the circumstances / consultants' fees.

New restrictions on drive-throughs will limit the locations suitable for this type of development, which could have an impact on land values for acquiring suitable sites.

Retail
The policy has been amended to broaden its scope, the locational aspect that applied to development that will generate significant footfall now applies to all retail proposals to direct investment towards centres. Retail and commercial sectors, housebuilders, planning authorities, key agencies. Ensures that developments are directed to the most sustainable locations to provide communities with easy access to the goods and services they need, whilst supporting the need for urban centres to diversify as a result of the challenges that they are facing. Withdrawal of support for out of town developments may have an impact on certain businesses who previously focused on this approach as part of their locational strategy.
Rural development
More clarity on the policy for resettling previously populated areas has been provided, supporting development in principle but requiring suitable areas to be identified in the local development plan and proposals to be designed to a high standard and compatible with climate targets. All stakeholders involved in delivering developments. Ensures that policies on rural development will positively encourage development that helps to repopulate and sustain rural areas and stimulate rural economic growth and sustainability. Designing proposals to be compatible with climate targets may require new approaches and as such development costs may differ to current approaches. Planning authorities may have to consider additional evidence, which would be provided by the applicant.
Tourism
A new policy on sustainable tourism, supporting growth of the sector in a way which manages impacts on local communities. A new policy to manage short term holiday letting is introduced, and existing facilities which have a viable use are protected. Tourism industry, planning authorities. Ensures that the tourism sector can grow sustainably whilst ensuring that impacts on local communities and the environment are addressed. Additional costs may arise for businesses wishing to locate in areas where existing tourism provision is having adverse impacts and for businesses that wish to change the use of a tourism facility away from a tourism use.
Culture and creativity
A new policy on culture and creativity which recognises the importance of the sector, requires proposals to make provision for public art, encourages creative and cultural uses, protects existing venues, and reflects the Agent of Change principle. Culture and creative sectors, developers involved in delivering developments that will impact on these sectors. Ensures that the planning system supports the culture and the creative sectors in recognition of their contribution to Scotland's health and wellbeing and cultural, social, economic and environmental prosperity. Additional costs may arise for developments that propose new public spaces where public art provision is expected, and for businesses that wish to change the use of their premises away from an arts and culture use. The Agent of Change principle is already applied to decision making so is unlikely to generate additional costs.
Aquaculture
An updated policy on sustainable aquaculture which reflects industry needs whilst taking into account wider marine planning. Aquaculture industry, planning authorities, key agencies. Ensures that the planning system continues to support the sustainable growth of the finfish, shellfish and seaweed sectors, including by guiding new developments to locations that reflect industry needs and take into account wider marine planning. Aquaculture developments are focused in a small number of planning authorities who will have to continue to ensure appropriate skills are available to handle applications.
Minerals
Extraction of fossil fuels (excluding unconventional oil and gas) is not supported other than in exceptional circumstances that are consistent with national policy. We confirm our position of no support for the development of unconventional oil and gas in Scotland. Mineral extraction industries, planning authorities, key agencies. Ensures greater support is given to our transition away from fossil fuels by ensuring extraction of fossil fuels (excluding unconventional oil and gas) is only supported where it can be demonstrated that it can be aligned with national policy. There should be no direct additional costs for industry. There may be minor additional costs incurred by some planning authorities resulting from the need to consider any future developments that might come forward under exceptional circumstances, but these are expected to be very limited in number.

Contact

Email: Chief.Planner@gov.scot

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