Red tape busting reforms to the planning system which could save the economy up to £300 million a year were announced by Housing and Planning Minister Margaret Beckett.

A series of measures to ease the pressure on businesses and cut down their costs during the challenging economic climate have been set out in the Government's response to the Killian Pretty report, published today by Communities and Local Government.

Key proposals enable more smaller businesses to develop their premises without needing full planning permission, potentially taking nearly 40% of minor business and non residential applications out of the system altogether or making them subject to a quicker and simpler process.

Small businesses, shops, schools and hospitals wanting to build small scale extensions to would no longer need to pay the costs or wait weeks to start building. Other small redevelopments, such as the replacement of shopfronts, would go through a smoother process.

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This is in addition to the range of measures the Government has introduced to simplifying the regulations facing businesses that have so far helped businesses save around £1.9 billion a year.

By taking smaller applications out of the system there will be more time and resources for councils to focus on the major applications that matter most. Developers and councils will also be further encouraged to talk about proposals before a planning application is submitted to iron out potential problems early on.

Other proposals include reducing the burden of information that businesses will be required to provide to support their applications.

Ms Beckett said: "Right now in these difficult economic times we need to reduce the burden on businesses and small shops, and ensure the planning system is not stifling economic recovery.

"Creating a more proportionate and efficient planning applications system now means we are more likely to have crucial development and infrastructure in place when the economic upturn comes.

"These proposals will cut red tape and tackle the delays that both businesses and councils often find exasperating and costly.

"And they could save up to £300 million a year by building a more effective and more cost-efficient planning system."

(CD/JM)