Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what consideration is given within the planning system to the potential impact of housing developments on nearby (a) small businesses and (b) local employment.

Local planning authorities are expected to assess economic needs as part of their evidence base and to consider these issues when determining individual applications, including the potential effects of new housing development on nearby businesses and on opportunities for local employment.

The National Planning Policy Framework (NPPF) makes clear that planning policies and decisions should ensure that new development can be integrated effectively with existing businesses. Where the operation of an existing business or community facility could have a significant adverse effect on new development in its vicinity, the applicant (or ‘agent of change’) should be required to provide suitable mitigation before the development has been completed.

The government is currently consulting on changes to the NPPF, including updated policy on the agent of change principle so that it is more explicit about the matters to be considered and types of activity which may be affected. The consultation can be found on gov.uk here and will remain open for responses until 10 March 2026.