UK (Parliament Politics Magazine) – Chancellor Rachel Reeves’s planning reform faces a setback as senior adviser Catherine Howard quits after four months over deregulation disputes.
As reported by Helena Horton and Kiran Stacey of The Guardian, Chancellor Rachel Reeves’s UK planning reform was hit after her appointed senior adviser resigned after four months.
Which senior adviser quit Rachel Reeves’s Treasury role?
Catherine Howard will leave her role at the Treasury when her contract ends on 1 January, despite informal requests to continue indefinitely.
She reportedly warned the government to reconsider immediate action on some of its more extreme measures to bypass planning rules, which are intended to promote faster delivery of infrastructure projects.
The decision to step down came after internal disputes among senior government officials over the extent of deregulation, with some ministers warning that Prime Minister Sir Keir Starmer’s latest initiative to accelerate major building projects might strain EU relations.
Some Labour MPs are raising concerns, with 30 writing to the Prime Minister this week to urge reconsideration of his most radical planning proposals.
Ms Howard said in a statement,
“Over the past four months I have thoroughly enjoyed my time as the chancellor’s infrastructure and planning adviser, and in my time have had the ability to advise HM Treasury and help steer the important steps the government is taking to improve the planning system to support economic growth.”
She added,
“I look forward to continuing my engagement with HM Treasury and government as I return to the private sector.”
In September, she was appointed to assist the Chancellor on planning reforms ahead of the budget, a decision welcomed by senior government officials and several Labour MPs.
The Treasury asked Ms Howard to remain in her post as long as possible, but she chose to leave in January and return to her partnership at the private law firm Herbert Smith Freehills Kramer.
Sources indicate she challenged the Prime Minister’s decision to adopt in full the proposals of economist John Fingleton’s review on accelerating nuclear power station construction.
She is understood to have believed that Mr Starmer should not have accepted recommendations to overhaul EU-derived laws without first seeking legal advice on compliance with binding nature targets and EU trade agreements.
The Labour leader and Chancellor Reeves have made planning central to their economic growth agenda, but progress has been slow, with recent figures showing the economy contracted 0.1% in the three months to October.
Ms Howard raised concerns with government departments, including the Cabinet Office and the Environment Department, warning that the review could undermine EU trade and cause widespread destruction of habitats.
Some Labour backbenchers share these concerns, with MP for North East Hertfordshire, Chris Hinchliff, leading a campaign against the review.
He added,
“It’s time our Labour government stopped pitching nature as the enemy of a better life for ordinary people in this country and realised that, for the vast majority, it is a measure of it.”
What did Chris Curtis say about Catherine Howard’s contribution to the Treasury?
The Labour Growth Group’s co-chair, Chris Curtis, hailed her appointment as an “exceptional addition” to the Treasury.
He added,
“Catherine has made a major contribution during her time at the Treasury, not least in ensuring the largest changes to planning in a generation will soon be passed into law. Her expertise has been a great asset to government.”
What did John Fingleton say about UK planning and infrastructure projects?
Keir Starmer said in a post-budget speech last week,
“In addition to accepting the Fingleton recommendations, I am asking the business secretary to apply these lessons across the entire industrial strategy.”
John Fingleton suggested reforms such as revising protected species regulations and increasing acceptable radiation limits for residents and workers near nuclear power plants.
He recommended that infrastructure projects make substantial, pre-agreed, upfront payments to the government quango Natural England instead of protecting or restoring habitats lost to development.
Mr Fingleton’s recommendations included making it more expensive for individuals and charities to challenge infrastructure schemes in court.
Earlier this week, he added,
“We need to have a more mature relationship with risk. Projects often do not go ahead because of concerns about safety but often all you are doing is moving the risk somewhere else.”
What are the key measures in the UK 2025 Budget?
- Income tax and National Insurance thresholds will be frozen for three more years, bringing more people into higher tax bands.
- A council tax surcharge will apply to homes over £2m, and higher rates on property, dividend, and savings income will increase by two percentage points.
- Pension contributions via salary sacrifice will be capped at £2,000, and the annual ISA cash limit will drop to £12,000 from April 2027.
- The ECO insulation scheme will be removed, and households will see a £150 reduction on energy bills.
- The two-child limit on Universal Credit will be scrapped, helping 450,000 children in low-income families.
- The national living wage will rise to £12.71, and the minimum wage for 18–20-year-olds will increase to £10.85 per hour.
- Entrepreneurial investment schemes will be expanded, and business rates for 750,000 retail, hospitality, and leisure firms will be permanently reduced.