Government response to the National Infrastructure Commission report on improving nationally significant infrastructure planning · first published 22 November 2023
This document is the government's formal response to the National Infrastructure Commission's (NIC) report on improving the planning system for Nationally Significant Infrastructure Projects (NSIPs) — very large infrastructure projects (e.g. power stations over 50MW, major roads, reservoirs) that need a Development Consent Order under the Planning Act 2008. The government accepts the ambition behind all 6 NIC recommendations, covering: more regular reviews of National Policy Statements (NPSs); modular NPS updates; better environmental data sharing; community benefits frameworks; a new Prime-Minister-level infrastructure oversight forum; and performance KPIs for statutory consultees. Most reforms target the planning and consenting process itself, binding government departments, the Planning Inspectorate, and statutory consultees — not suppliers. The most relevant signal for SMEs is the move toward cost recovery and KPIs for statutory consultees from April 2024, which could affect the speed and cost of NSIP consenting for projects SMEs are subcontracted on. SMEs bidding on large infrastructure projects or their supply chains should be aware that the pipeline of NSIPs (worth up to £30 billion a year) is being actively accelerated, which may create earlier and faster procurement opportunities.
WHO THIS APPLIES TO
THE ENKII VIEW
The primary beneficiaries of these reforms are large infrastructure developers navigating the NSIP consenting regime — not SMEs bidding directly for public contracts. However, the acceleration of a pipeline worth up to £30 billion annually, combined with faster consenting timelines, means more NSIP-linked procurement activity is likely to come to market sooner. SMEs in construction, environmental consultancy, energy, transport, and water sectors should treat this as a pipeline signal and position themselves in relevant supply chains before project consenting completes. The community benefits framework (Recommendation 4) is the one area with direct SME opportunity: local businesses near NSIP host communities may benefit from voluntary funding packages tied to electricity transmission and, in future, other infrastructure types.
1. Map your services against the NSIP project pipeline now — with £30bn/year of projects being actively accelerated and NPSs for energy and transport due for designation by March 2024, procurement activity on these projects is likely to come to market sooner than previously expected. Identify tier-1 contractors on upcoming NSIP projects and begin relationship-building.
SMEs in construction, energy, water, transport, or environmental consultancy supplying into NSIP project supply chains — The government states NPS reviews accounting for 'around 80% of the NSIP pipeline of projects' are on track for completion by March 2024, directly unlocking consenting and downstream procurement.
2. Monitor the government's published response to the community benefits consultation (released as part of the Transmission Acceleration Action Plan) and engage with local project developers about community benefit packages — voluntary funding is being recommended at levels above existing examples.
SMEs operating near major electricity transmission or infrastructure host communities — The government 'proposed to introduce a recommended level of funding for community benefits, which we believe will increase the level of funding from that seen in existing examples of community benefits for electricity transmission network infrastructure.'
3. Be aware that formal Service Level Agreements (SLAs) with statutory consultees will NOT be required for smaller NSIP projects — KPIs will be used instead. When pricing bids, do not budget for SLA negotiation costs on smaller schemes.
SMEs bidding as subcontractors or consultants on smaller NSIP projects — The government explicitly states that SLAs 'can be costly and time consuming to agree for smaller projects' and is 'developing Key Performance Indicators for NSIP cases' as the alternative for projects where SLA costs are not justified.
4. Align your data formats and outputs with the emerging open data standards being introduced through the Levelling Up and Regeneration Act 2023 (LURA) — including Environmental Outcomes Reports (EORs) and Planning Data Standards — to remain competitive as NSIP applicants demand compliant environmental data products.
SMEs providing environmental data, monitoring, or assessment services — The government states EORs 'will allow the government to use the data standards for information provided as part of the environmental assessment', signalling these standards will become the baseline for NSIP environmental work.
5. Do not plan for onshore wind projects to enter the NSIP (Development Consent Order) route — they remain in the local planning authority system. Continue targeting local authority planning pipelines rather than the Planning Inspectorate for onshore wind work.
SMEs in onshore wind supply chains — The government explicitly states: 'we do not propose to bring onshore wind into the NSIP regime at this current time', confirming the local planning route remains in force.
Every rule below quotes the official document verbatim.
The NSIP regime covers infrastructure projects worth up to £30 billion of investment in the UK every year. (Nationally Significant Infrastructure Projects under the Planning Act 2008, UK-wide)
“the consenting and delivery of NSIPs, which represent up to £30 billion of investment in the UK every year”
Key NPS reviews (covering around 80% of the NSIP project pipeline) are on track for completion by March 2024. (National Policy Statements for energy, national networks, and water resources; central government)
“reviews of key NPSs (accounting for around 80% of the NSIP pipeline of projects) on track for completion by March 2024”
The government commits to reviewing key NPSs at least every 5 years, without introducing formal legislation at this stage. (National Policy Statements for Energy, Water Resources and National Networks; central government)
“we re-commit to reviews within that 5-year timeline”
Key regulations and guidance for reforms to the pre-application process are intended to be revised and in place from April 2024. (NSIP pre-application process; Planning Inspectorate; all NSIP applicants)
“the intention that key regulations and guidance will be revised and in place from April 2024”
An external review of the NPS review and designation process will be commissioned in early 2024, with recommendations delivered to government by end of 2024. (NPS framework; central government)
“This review will be commissioned in early 2024, to deliver recommendations to government by the end of 2024”
Key Performance Indicators (KPIs) for statutory consultees in NSIP cases will be introduced from April 2024 under a cost-recovery model, supported by primary legislation already in place via the Levelling Up and Regeneration Act 2023 (LURA). (Statutory consultees operating in the NSIP system; central government; from April 2024)
“we are progressing changes to regulations and guidance to implement this and support delivery of Key Performance Indicators from April 2024”
For smaller NSIP projects, the government will use KPIs rather than formal Service Level Agreements (SLAs), because SLAs can be costly and time-consuming for smaller projects. (Smaller NSIP projects; statutory consultees and developers)
“service level agreements (SLAs), whilst useful for many of the larger NSIP projects, can be costly and time consuming to agree for smaller projects”
A ministerially-led forum reporting to the Prime Minister or Chancellor of the Exchequer will be established to provide strategic oversight of major infrastructure projects end-to-end. (Central government oversight of NSIPs; UK-wide)
“We will therefore put in place a ministerially led forum at the centre of government that will have strategic oversight of major infrastructure projects, including those captured by the NSIP regime (such as electricity generation projects over 50MW in England)”
The NSIP regime covers electricity generation projects over 50MW in England. (Electricity generation NSIPs; England)
“those captured by the NSIP regime (such as electricity generation projects over 50MW in England)”
Community benefits for electricity transmission network infrastructure will be guided by voluntary guidance, including a recommended level of funding, to be set following a consultation that closed on 15 June 2023. (Electricity transmission network infrastructure community benefits; England; Department for Energy Security and Net Zero (DESNZ))
“The consultation proposed to introduce voluntary guidance on the appropriate levels and forms of benefits to give communities the knowledge, power and flexibility to decide what benefits they want in consultation with the project developer. We proposed to introduce a recommended level of funding for community benefits”
The government will not bring onshore wind into the NSIP regime at this time, following recent updates to the National Planning Policy Framework (NPPF) to support local-authority-level onshore wind decisions. (Onshore wind; England)
“Given the recent changes to the NPPF, we do not propose to bring onshore wind into the NSIP regime at this current time”
A Strategic Spatial Energy Plan (SSEP) will be produced to bridge the gap between government energy policy and infrastructure development plans. (Energy infrastructure planning; central government)
“The government has committed to producing a Strategic Spatial Energy Plan (SSEP), to bridge the gap between government policy and infrastructure development plans”
A taskforce led by the Chief Planner will draw conclusions by summer 2024 on the merits of a more spatial planning approach in transport, water, waste and wastewater sectors. (Transport, water, waste and wastewater infrastructure planning; central government)
“We will create a taskforce, led across government by the Chief Planner, to draw conclusions by summer 2024, about the merits of adopting a more spatial planning approach in transport, water, waste and wastewater sectors”
The Department for Environment, Food and Rural Affairs (Defra) is expected to introduce a data sharing platform for environmental data by the end of 2024. (Environmental data for NSIP development; Defra; by end of 2024)
“By the end of 2024 the Department for Environment, Food and Rural Affairs should introduce a data sharing platform for environmental data with clear data standards”
This briefing is enkii's interpretation of the official document — the official text always governs.
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