The Confederation of British Industry (CBI) is urging the Government to allow the extension of planning permissions that are due to expire to help struggling firms who have been forced to postpone projects during the recession.

Planning permission is often given with a time limit of three years. Firms that have gained planning permission but have been forced to delay projects because of the recession, risk losing the permission after this period has lapsed.

The CBI has written to government ministers calling for measures to allow applicants to extend planning permission, arguing that forcing firms to reapply would prove costly and places an extra financial pressure on firms by reducing the recorded value of property assets.

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Firms were previously allowed to apply to extend planning permission until planning laws in England and Wales were changed in 2004. Such flexibility has, however, remained a part of the Scottish planning system.

CBI Director for Business Environment, Dr Neil Bentley said: "We want to make sure builders and developers can get to work quickly when firms are in a position to build again and not hold back the prospects of recovery by forcing them to jump through costly and uncertain planning hoops because their consent has lapsed.

"Introducing flexibility at this critical time by allowing firms to apply for a time-extension on planning permission would help them survive the recession, protect jobs and leave them better-positioned to take advantage of the economic recovery when it comes.

"Current planning laws need to recognise the exceptional economic environment that we face at the moment."

(CD/BMcC)