Local authorities play a crucial role in delivering essential infrastructure to serve their communities and ensure new development is sustainable. Infrastructure delivery involves multiple stakeholders, and councils often have a dual role—both directly delivering infrastructure and facilitating collaboration among other stakeholders to help ensure necessary infrastructure is delivered.
This resource is part of a suite of tools and guidance that PAS is designing to support LPAs in infrastructure planning. By providing clear, structured information on types of infrastructure, permission routes, and funding options, this resource is designed to help LPAs and infrastructure providers collaborate more effectively, ensuring infrastructure needs are identified and addressed throughout the planning process and aligned with both local and national priorities.
Updated: 17th February 2025
Navigating the complex system of approvals, funding routes, and delivery mechanisms for different types of infrastructure can be challenging. Understanding the most appropriate delivery vehicles and where responsibilities lie is critical to effective planning.
Through our work supporting councils across various PAS programmes, we identified a need for a comprehensive resource that:
✔ Categorises different infrastructure types
✔ Outlines the permission processes required for each
✔ Identifies available funding sources
This resource is designed to serve as a practical reference tool for local authorities and stakeholders involved in infrastructure projects, supporting a holistic approach to planning and delivery.
Local Planning Authorities (LPAs) and infrastructure providers must interact on a number of critical issues to ensure the smooth development and delivery of infrastructure. Coordinating across these areas helps ensure that infrastructure planning is aligned with both local and national needs, improving efficiency and effectiveness across the planning system. The key areas of interaction include:
- Local Plan development – LPAs and infrastructure providers work together to map infrastructure needs against future growth, ensuring clear timelines for delivery and alignment with the local plan’s Infrastructure Delivery Plan (IDP).
- Consideration of major planning applications and site allocations – Collaboration is needed to assess and include necessary infrastructure provisions, ensuring infrastructure is factored into planning negotiations for major developments.
- Planning application considerations – LPAs and infrastructure providers assess the impact of development on infrastructure, ensuring that existing capacity is adequate and identifying additional infrastructure needs.
- Nationally Significant Infrastructure Projects (NSIPs) – Collaboration ensures that large-scale infrastructure projects align with local needs and policies, helping to address regional infrastructure requirements and beyond.
- Funding allocation – LPAs and infrastructure providers work together to allocate funding through developer contributions (e.g., Section 106 and CIL) and council capital funds, ensuring resources are directed to projects that meet development and community needs.
This resource is part of a suite of tools and guidance that PAS is designing to support LPAs in infrastructure planning. By providing clear, structured information on types of infrastructure, permission routes, and funding options, this resource is designed to help LPAs and infrastructure providers collaborate more effectively, ensuring infrastructure needs are identified and addressed throughout the planning process and aligned with both local and national priorities.
This resource is structured into a series of information tables focusing on:
1. Types and Subtypes of Infrastructure (Table 1)
- A breakdown of typical infrastructure types and subtypes.
2. Current Permission Routes (Tables 2 and 3)
- A summary of permission routes, decision-making processes, and local authority roles.
- An overview of what type of infrastructure each permission route be applied to, based on current legislation and regulatory frameworks.
3. Funding & Financing Options (Tables 4, 5 and 6)
- Overview of traditional and innovative funding routes for infrastructure projects.
- High-level assessment of applicable funding/financing options for different types of infrastructure.
- Examples of long-term public sector funding opportunities.
Infrastructure Type | Subtypes |
Transport | Road (Highways England), Road (Local Authority / Highways Authority), Rail (National), Metro Rail / Tram / Tube, Bus, Airports, Ports / Harbours |
Active Travel | Cycling Infrastructure, Footways, Public Realm |
Utilities / Energy | Electricity, Gas, Digital, Water, Nuclear, Marine / Offshore, Wind, Waste, District Heating / Cooling, Data Centres |
Education | Pre-school & Nursery, Primary & Secondary Education, Further & Higher Education |
Communities | Sports and Leisure, Libraries, Community Facilities, Cemeteries |
Emergency Services / Justice Infrastructure | Police, Fire, Ambulance, Prisons, Courts |
Health | Primary Health, Hospitals |
Green & Blue Infrastructure | Flood Management, National Parks, Parks and Green Spaces, Play Spaces, Sports Pitches, Canals, Biodiversity Enhancements |
The current legislative and regulatory framework in the UK allows for a number of routes to obtain permission for infrastructure development. These are summarised in Table 2.
Permission Route | Description | Scale | Benefits | Challenges |
|
Further Guidance |
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Development Consent Orders (NSIP) | A streamlined process for Nationally Significant Infrastructure Projects (NSIPs) that simplifies permission and includes Compulsory Purchase Orders (CPO). Thresholds for NSIPs are set out in the Planning Act 2008. | National, Regional | Simplifies large-scale project permissions and includes CPO if needed. | Requires strict criteria and procedures. |
|
Further guidance |
Hybrid Bill | Rare route for securing powers for major infrastructure projects of national importance, such as Crossrail and High Speed 2. | National, Regional | Allows tailored legislation for specific projects. | Requires significant time and resources; NSIPs were introduced to help make this process quicker. |
|
Further guidance |
Standard Planning Application | Standard process for planning applications through Local Planning Authorities (LPA). Does not include CPO. | Local, Regional | Applicable to all infrastructure types. | Can be time-consuming, especially when CPO is needed separately. |
|
Further guidance (CPO) |
Transport and Works Order | Used for authorising railways, tramways, and inland waterways, except those defined as NSIPs. | All scales | Specific route for transport-related projects. | Can be time-consuming and complex for large schemes. |
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Further guidance |
Local Development Order (LDO) | Grants permitted development rights within a specified area, removing the need for planning applications. | Local | Flexible, helps promote development of certain types in specific areas. | Can be a complex process. |
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Neighbourhood Development Order (NDO) | Grants planning permission for a specific development in a neighbourhood. | Neighbourhood | Facilitates development without the need for planning applications. | Only applicable to smaller-scale projects. |
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Further guidance |
Community Right to Build Order | A type of NDO for small-scale, community-led developments like housing, community centres, and energy schemes. | Neighbourhood | Ensures community benefit through proceeds. | Only applicable to smaller-scale projects. |
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Further guidance |
General Permitted Development Order | Allows certain minor works without a planning application. | Various | Allows minor works/ developments without the need for planning permission. | Limited to minor works/developments. |
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Further guidance (general) Further guidance (emergency facilities) |
Table 3 provides an overview of what type of infrastructure each permission route be applied to, based on current legislation and regulatory frameworks.
Permission route | Transport | Active Travel | Utilities/ Energy | Communities | Emergency services | Health | Green and Blue |
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Development Consent Orders (NSIP) |
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Hybrid bill |
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Standard Planning Application |
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Transport and Works Order |
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Local Development Order |
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Neighbourhood Development Order |
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Community Right to Build Order |
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General Permitted Development Order |
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Table 4 provides an overview of various funding and financing options for infrastructure projects, including traditional and innovative approaches. This guide can help local authorities navigate potential resources available for infrastructure development and identify the most appropriate routes for projects.
Category | Funding opportunity | Description | Benefits | Challenges | Responsible parties | Further Guidance |
---|---|---|---|---|---|---|
Developer Contributions | Community Infrastructure Levy (CIL) | Levy on new developments to fund infrastructure projects that support the development of the area. CIL can be pooled and spent anywhere within the local authority area or outside where it still supports the development of that area. | Provides a more predictable income stream and decision on what infrastructure is funded is not determined by the development from which the funding originated. | Competition and decision making on what infrastructure is funded when there is rarely enough income to fund all the infrastructure required to support an area. | Local Planning Authorities, Greater London Authority and other future Mayoral CIL charging authorities. | Further guidance |
Section 106 | Financial or in-kind contributions negotiated with developers as part of a planning permission and used to fund infrastructure and other obligations, including affordable housing. | Tailored contributions specific to development needs. | Contributions can be subject to negotiation and must meet defined legal tests in respect of their relationship to the development. Can cause delays in project delivery or worse no delivery where planning permission is not implemented. | Local Planning Authorities | Further guidance | |
Section 278 | Agreement allowing developers to modify highways as part of a planning application. | Additional funding for highways improvements. | Coordination with highways authority may delay projects. | Highway Authorities | Further guidance | |
Public Sector Funding | Long-term Public Sector Funding | Ongoing grants from public sector bodies for infrastructure development. | Stable funding source. | Constraints set by issuing authority. | Central/Regional Government | |
Time-limited Public Sector Grants/Funds | Time-limited public sector grants for specific infrastructure projects. Examples: Levelling Up Fund, Transport Decarbonisation Fund. | Provides additional funding for infrastructure development. | Competitive bidding process. | Central/Regional Government | Further guidance | |
Public Sector Financing | Public Works Loan Board (PWLB) | Borrowing from PWLB at low rates for capital works and asset investments. | Low-cost borrowing option. | Potential future budget impact. | UK Debt Management Office (HM Treasury) | Further guidance |
UK Municipal Bonds Agency (UKMBA) | Offers funding to Local Authorities through lending programmes without the need for a credit rating. | Alternative to PWLB with access to low-cost borrowing. | Future budget impacts. | UKMBA | Further guidance | |
UK Infrastructure Bank (UKIB) | Loans to Local Authorities to fund capital expenditure for infrastructure projects. | Low-cost borrowing, especially for priority projects. | Limited to UKIB priorities and future budget impacts. | UKIB | Further guidance | |
Borrowing vs Local Revenue | Business Rate Retention | Councils can retain up to half the business rates in a local area, which can be used for infrastructure or to raise finance. | Additional income with no cost to local authorities. | Opportunity cost if used for infrastructure instead of other needs. | Local Authorities | Further guidance |
Tax Increment Financing (TIF) | Borrow against future predicted increases in business rates from infrastructure investment. | Upfront financing for infrastructure projects. | Risk in accurately predicting future revenue. | Local Authorities | Further guidance | |
Local Taxes and Levies | Workplace Parking Levy (WPL) | Charge employers for workplace parking spaces to fund transport infrastructure projects. | Additional funding stream for transport. | Requires detailed planning and validation before implementation. | Department for Transport, GLA, Transport for London | Further guidance |
Business Rate Supplement (BRS) | Local authorities can levy a supplement on business rates to fund infrastructure investment. | Additional income stream for infrastructure. | Needs consultation and a ballot of affected businesses. | Local Authorities, GLA, Central Government | Further guidance | |
Leveraging Value from Local Assets | Tourist Tax | A local levy on tourists to fund infrastructure, though it requires new legislation. | Potential new revenue source for local projects. | Requires primary legislation to allow its implementation. | Local Authorities | Further guidance |
Local Authority Backed Vehicles (LABV) | Use local authority assets (typically land) to attract private investment for regeneration projects. | Unlocks value from underutilised assets. | Requires careful planning, risk management, and stakeholder engagement. | Local Authorities, Private Sector | Further guidance | |
Strategic Asset Management | Maximises local authority assets by repurposing or refurbishing them for investment or sale. | Maximises the potential of existing assets. | May require upfront investment from the local authority. | Local Authorities | Further guidance | |
Other | PPP, PF1, PF2 | Private finance options through long-term contracts with private sector partners for infrastructure projects. | Transfers risks to private partners. | Requires extensive planning, negotiation, and contract management. | Local Authorities, Private Sector | Further guidance |
Local Government Pension Scheme (LGPS) | Invest public service pension funds in local infrastructure projects. | Actively seeks to invest in local infrastructure. | Requires detailed planning, risk, and contract management. | LGPS, Central Government | Further guidance | |
Institutional Investment | Raise funds from pension funds or overseas investors for infrastructure projects. | Access to large pools of capital. | Requires complex negotiations and contractual arrangements. | Pension Funds, Overseas Investors | Further guidance | |
Community Funding Platforms | Alternative funding for small-scale community-led projects. Local authorities may provide additional funding. | Encourages community involvement in projects. | Challenges in raising sufficient funds or ensuring long-term sustainability. | Local Communities, Crowdfunding Platforms (e.g., Spacehive) | Further guidance | |
National Strategic Infrastructure Projects (NSIPs) Community Benefits | Community benefits secured from hosting nationally significant infrastructure projects. | Ensures communities benefit from large infrastructure projects. | No clear NSIP-wide guidance available yet. | Planning Inspectorate, National Infrastructure Commission, Central Government | Further guidance |
Table 5 provides an overview of what type of infrastructure can each funding/financing option be applied to, based on current funding/financing criteria and regulations of the respective funding/financing body.
Category | Funding opportunity | Transport | Active Travel | Utilities/ Energy | Education | Communities | Emergency services | Health | Green and Blue |
---|---|---|---|---|---|---|---|---|---|
Developer Contributions | Community Infrastructure Levy (CIL) | ● | ● | ● | ● | ● | ● | ● | ● |
Section 106 | ● | ● | ● | ● | ● | ● | ● | ● | |
Section 278 | ● | ● | |||||||
Public Sector Funding | Long-term Public Sector funding | ● | ● | ● | ● | ● | ● | ● | ● |
Time-limited Public Sector Grants/ Funds/ Programmes | ● | ● | ● | ● | ● | ● | ● | ● | |
Public Sector Financing | Public Works Loan Board (PWLB) | ● | ● | ● | ● | ● | ● | ● | ● |
UK Municipal Bonds Agency | ● | ● | ● | ● | ● | ● | ● | ● | |
UK Infrastructure Bank (UKIB) | ● | ● | ● | ● |
Category | Funding opportunity | Transport | Active Travel | Utilities/ Energy | Education | Communities | Emergency services | Health | Green and Blue |
---|---|---|---|---|---|---|---|---|---|
Borrowing vs Local Revenue | Business Rate Retention | ● | ● | ● | ● | ● | ● | ● | ● |
Tax Increment Financing (TIF) | ● | ● | ● | ● | ● | ● | ● | ● | |
Local Taxes and Levies | Workplace Parking Levy (WPL) | ● | ● | ||||||
Business Rate Supplement (BRS) | ● | ● | ● | ● | ● | ● | ● | ● | |
Tourist Tax | ● | ● | ● | ● | ● | ● | ● | ● | |
Leveraging Value from Local Assets | Local Authority Backed Vehicles (LABV) | ● | ● | ● | ● | ● | ● | ● | ● |
Strategic Asset management | ● | ● | ● | ● | ● | ● | ● | ● | |
Other | PPP, PF1, PF2 | ● | ● | ● | ● | ● | ● | ● | ● |
Local Government Pension Scheme (LGPS) | ● | ● | ● | ● | ● | ● | ● | ● | |
Institutional Investment | ● | ● | ● | ● | ● | ● | ● | ● | |
Community Funding Platforms | ● | ● | ● | ● | ● | ● | ● | ● |
Table 6 provides examples of various public sector funding routes available to support infrastructure development across a wide range of sectors. From transportation to healthcare, these funding opportunities help deliver essential services and contribute to improving communities, education, and sustainability. This guide outlines the types of infrastructure that each funding route supports, and provides resources for further guidance. You should note that this is not an exhaustive list and that we will try to update it as and when we are aware of new funding opportunities.
Funding Route | Description | Type(s) of Infrastructure | Guidance |
---|---|---|---|
One Public Estate (OPE) | The OPE programme supports cross-public sector property projects. Funding rounds open around September. | Various | Further guidance |
OPE Place Pilots | Focuses on public sector property collaboration to deliver a smaller, greener public estate informed by local needs. | Various | Further guidance |
National Highways Designated Funds | Provides funding to maintain and improve England’s strategic road network, focusing on safety, environment, etc. | Transport, Active Travel | Further guidance |
National Lottery Community Fund | Offers grants for not-for-profit groups to create better-connected societies, supporting infrastructure development. | Communities | Further guidance |
Wolfson Foundation – Funding for Places | Provides capital grants to support excellence in education, science, health, heritage, etc. | Education, Health, Communities | Further guidance |
EV Infrastructure Grant for Residential Car Parks | Grants to install Electric Vehicle charging points at residential properties managed by landlords. | Transport | Further guidance |
The Community Ownership Fund | Provides matched-funding for communities to buy or take over local assets, such as parks or theatres. | Communities, Green | Further guidance |
National Lottery Grants for Heritage | Supports heritage projects, including natural landscapes, historic sites, and community-driven activities. | Communities, Green | Further guidance |
School Rebuilding Programme | Supports rebuilding and refurbishing schools and colleges based on their condition. | Education | Further guidance |
Basic Needs Capital Allocation | Capital funding allocated to create new school places across local authorities. | Education | Further guidance |
School Condition Funding | Funding for improving the condition of school estates, allocated via bids or allocations. | Education | Further guidance |
High Needs Provision Capital Allocations | Capital funding for improving provisions for children with special educational needs or disabilities. | Education | Further guidance |
Free Schools Programme | Funding for creating schools outside of local authority control, funded by the Department for Education. | Education | Further guidance |
Health Infrastructure Plan | Framework for NHS capital funding, covering primary care and strategic projects like hospital upgrades. | Health | Further guidance |