Labour’s Planning and Infrastructure Bill could boost the UK economy by up to £7.5bn over the next decade, according to its impact assessment report.

The study, released today, says the move to support the building of 1.5 million homes over the next five years will act as a “significant boost to businesses and households in the UK”.

Its highest estimate of what the measures will add to the economy over the next 10 years is up to £7.5bn, its central estimate is £3.2bn and its lower estimate is £1.3bn.

The report says the aim of the Bill is to “support the building of 1.5 million homes in England and fast-track 150 planning decisions on major economic infrastructure projects by the end of this parliament”.

The Bill is currently at the committee stage of the House of Commons after being introduced in March.

Its reforms include:

• Overhauling the planning decision process to set out which applications can be determined by officers and which by committee to speed up approvals
• Strengthening the compulsory purchase process to acquire land for projects that are in the public interest and ensure compensation paid to landowners is not excessive
• Granting additional powers to development corporations to facilitate large-scale developments and new towns
• Reducing the consultation process for approving major infrastructure such as reservoirs, windfarms, roads and railway lines
• Rewarding people who live near new electricity transmission sites with up to £2,500 off their energy bills over 10 years

Deputy Prime Minister Angela Rayner says: “This landmark pro-growth Bill will get spades in the ground and the foundations laid for a new generation of homes, as we deliver on our plan for change.”

Last month, Propertymark chief executive Nathan Emerson said: “To generate robust legislation to assist with housing demand, it is right to evaluate the entire planning and infrastructure process from the ground upwards and streamline procedures.

“Propertymark is keen to see an increase in the volume of new homes built, and for this to happen, there must be careful consideration regarding the speeding up of planning approvals.

“They also must be full consideration to ensure local councils can facilitate new homes that are urgently needed, especially when it comes to the provision and specific skill sets of planning officers.”