Government Strips Local Council of Planning Powers

South Tyneside Council has lost its authority to determine major planning applications after being placed under special measures by the UK Government, a move that could have significant implications for housing, investment and development projects across the borough and the wider North East.

The decision, announced this week by the Ministry of Housing, Communities and Local Government, means developers behind major projects can now choose to bypass the council and submit applications directly to the Planning Inspectorate for determination.

The development has attracted attention across the region, including neighbouring Newcastle, where local authorities continue to face increasing pressure to deliver new homes and economic growth while navigating complex planning regulations.

Government Intervention Follows Planning Concerns.

South Tyneside was one of nine local authorities across England to receive a designation notice after government assessments concluded there were areas where planning functions were not being performed adequately.

The review examined planning performance data covering the two-year period up to March 2025, alongside planning appeal outcomes recorded up to December 2025.

Officials confirmed that the designation applies specifically to future major planning applications and will not affect applications already submitted to the council.

The move places South Tyneside among a small number of councils facing direct government intervention over planning performance, highlighting growing scrutiny of local authorities tasked with delivering housing and infrastructure targets.

What Counts as a Major Development?

Under current planning regulations, housing schemes are classed as major developments when they involve ten or more homes or cover sites larger than 0.5 hectares.

Commercial and non-residential projects are considered major when they include at least 1,000 square metres of floor space or occupy sites exceeding one hectare.

Mineral extraction and waste management developments are also categorised as major applications.

These projects often involve substantial investment and can play a key role in local economic growth, employment opportunities and housing supply.

Appeals Played a Key Role.

Council officials had previously warned that a series of unsuccessful planning appeals placed the authority at risk of government action.

Among the developments linked to those appeals were proposals at the former Simonside Arms site, a battery energy storage facility in West Boldon and the Whitburn Lodge housing scheme.

Planning appeals can have a major impact on local authority performance ratings. Government data shows that councils with higher rates of overturned planning decisions face increased scrutiny from regulators and ministers.

According to the Ministry of Housing, Communities and Local Government, England requires hundreds of thousands of new homes annually to meet demand. Recent government targets continue to focus on accelerating housing delivery and reducing delays within the planning system.

Council Promises Action Plan.

South Tyneside Council leader Paul Mackings acknowledged the government's decision and said the authority was already taking steps to address concerns.

He stated that councillors serving on the planning committee had begun additional training designed to improve understanding of the latest national planning framework and support a more consistent decision-making process.

Mackings also argued that the period examined by the government did not accurately reflect the council's longer-term planning performance.

He stressed that the authority continues to process non-major planning applications efficiently and remains committed to supporting economic growth, business investment and housing delivery throughout the borough.

Impact Across the North East.

The designation is likely to be closely monitored by councils throughout the North East, including Newcastle, Gateshead and Sunderland, where major housing developments and regeneration projects remain central to future growth plans.

Newcastle alone has seen significant investment in housing, commercial property and city centre regeneration in recent years, making efficient planning decisions increasingly important for attracting developers and investors.

Industry experts suggest that planning certainty is one of the key factors developers consider when deciding where to invest, meaning local authorities across the region will be keen to avoid similar government intervention.

For South Tyneside, the designation will remain in place until ministers are satisfied that planning performance has improved sufficiently to justify its removal.

What Happens Next?

The council is expected to work closely with government advisers and the Planning Advisory Service to improve performance and regain control over major planning decisions.

While the designation does not stop development from moving forward, it represents a significant challenge for the authority as it seeks to restore confidence among residents, businesses and investors.

With housing demand remaining high across South Tyneside, Newcastle and the wider North East, the effectiveness of local planning systems is likely to remain firmly in the spotlight.

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