Planning Reform, Development, and the Budget: What SMEs Looking for Premises Should Know

The availability of commercial property — the amount of it, where it is, and what condition it is in — is ultimately a function of planning policy and development economics. The Autumn Budget could include announcements that affect both. For SMEs looking for space, understanding the pipeline matters.

Why supply is tight in many sectors

Industrial and logistics space remains undersupplied across most of the UK. Demand from e-commerce, manufacturing reshoring, and last-mile delivery has outpaced development. Planning constraints, high construction costs, and (until recently) high interest rates have slowed speculative development.

Office supply has bifurcated: there is oversupply of poor-quality secondary offices and genuine shortage of well-specified, EPC-compliant Grade A space. Many older buildings are not economically viable to refurbish to modern standards, which means they sit empty rather than being converted or rebuilt.

Retail supply is complex: prime retail space in major cities is letting well, but secondary high street space remains stubbornly available — a supply that does not match current demand.

Planning reform: what has happened so far

The government's planning reform agenda — including the National Planning Policy Framework (NPPF) update and the Planning and Infrastructure Bill progressing through Parliament — is aimed primarily at unlocking residential development. But commercial development is affected too, particularly:

• Changes to permitted development rights affecting conversion of commercial to residential (and vice versa)
• Infrastructure levy reform affecting developer contributions and viability
• Simplified local plan requirements that could accelerate commercial allocations

What the Budget might include

Budget announcements on planning and development could include:

Investment zones. Further designations of areas with simplified planning, tax reliefs, and infrastructure funding to attract commercial development and employment. Previous investment zones have included enhanced capital allowances, business rates relief, and employer NIC exemptions for new employees — genuinely significant incentives for businesses locating in designated areas.

Enterprise Zones and Freeports. Extended or new designations may be announced. Freeports offer customs, tax, and planning benefits for businesses operating from designated sites, and are particularly relevant to logistics and manufacturing businesses.

Development finance. The Budget may include announcements on British Business Bank lending, UKIB infrastructure finance, or other mechanisms intended to unblock development by improving viability.

What this means for your premises search

For most SMEs looking for space now, planning reform is a medium-term factor rather than an immediate one. New development announced today will not be available for occupation for two to four years at minimum.

What matters more immediately is the existing stock — what is available today, at what price and on what terms. The current market offers SME occupiers genuine advantages: landlord motivation is high, incentives are available, and the negotiating environment favours tenants.

RE:match connects businesses directly with landlords and agents who have commercial space available now — not in two years. Post your requirement and receive direct responses from those with matching space at rematch.co.uk.