As the consultation on the National Planning Policy Framework (NPPF) closes and the Labour Party Conference wraps up, this is a timely moment to reflect on the urgent need for planning reform and economic growth. We fully support the Government's focus on Stability, Investment and Reform as essential pillars for driving sustained economic progress.
At this week’s Labour Party Conference, Jonathan Reynolds, Secretary of State for Business & Trade, emphasised the critical importance of addressing the UK’s poor investment record and lagging productivity. His commitment to a long-term partnership with businesses to unlock economic growth is one that resonates with us at Prologis. We remain focused on how the reforms can help remove barriers to investment in key sectors like freight, logistics and digital infrastructure.
Reynolds’ call to unblock these barriers— especially in the development of data centres and other critical infrastructure such as freight and logistics—underscores the need for a more efficient and responsive planning system. At Prologis, we are eager to partner with Labour and the Government to help shape these much-needed changes, ensuring that the UK’s core industries can flourish and contribute to the modern economy.
Planning Reforms to Unblock Investment
The current planning process is a significant hurdle for businesses looking to invest in critical infrastructure. At Prologis, we’ve seen first-hand how these delays and uncertainties can stifle economic growth and constrain innovation. We fully support Labour’s drive to reform and streamline the planning system, reduce red tape and support the funding and resourcing of planning departments. Addressing these issues is key to removing barriers to unlock the investment needed to grow the UK’s economy.
Collaborating for Sustainable Growth and Alignment with the Industrial Strategy
The draft NPPF still lacks clarity in key areas, particularly in its alignment with the country’s Industrial Strategy. However, Keir Starmer’s commitment to partnering with key investors presents a valuable opportunity to bridge this gap. The announcement of a Green Paper on the Industrial Strategy by Chancellor Rachel Reeves is a major step forward, expected to provide clear guidance on the Government’s priority industries and how they will integrate with national planning policies. By aligning the NPPF with this strategy, Labour’s vision is to foster stronger collaboration between the government and investors, ensuring that planning reforms not only support the UK's broader economic goals but also drive investment in crucial sectors like infrastructure and logistics. This partnership will be key to unlocking sustainable growth and modernising the economy.
Supporting Critical Infrastructure and Clean Energy
The logistics industry and data centres are heavily reliant on consistent and secure energy supply to meet growing demands. However, energy shortages and uncertainty are becoming major obstacles, slowing down the growth of these critical sectors. Without a reliable energy infrastructure, projects risk being delayed, directly impacting economic growth and technological advancement. Reynolds also highlighted the importance of infrastructure that supports both the clean energy transition and the immediate power demands of industries like logistics and data centres. Prologis welcomes this balanced approach. It’s vital that the Government and local authorities work together to ensure that energy availability supports development, while also moving toward Labour’s clean energy targets.
The Path Ahead
With the NPPF consultation now closed, the next step is action. As Labour moves forward with its Industrial Strategy, Prologis stands ready to partner with the Government to turn these ideas into reality. Through effective collaboration, we can ensure that planning reforms deliver the economic growth the UK needs, while making sure that investments are sustainable, forward-looking, and beneficial to communities across the country.
By unblocking the planning barriers to investment, we can drive innovation, attract investment, and ultimately ensure a prosperous future for UK industries—and Prologis is eager to play a leading role in that transformation.