Under the terms of the Brexit Trade and Cooperation Agreement (TCA) either side can impose “rebalancing measures” or sanctions against the other if it believes environmental or social policies have been weakened in a way that would have “material impacts on trade or investment.”
The U.K. would be entitled to challenge the sanctions at tribunal and Brussels would have to prove that its claim was “based on reliable evidence and not merely on conjecture or remote possibility”, according to the text of the agreement.
The EU has previously shown a willingness to open legal battles under TCA — most notably in defense of EU fishing fleets’ right to catch sand-eels in U.K. waters following a blanket ban. Should the EU wish to challenge the planning policies, the mandatory first step would be to begin “consultations” with London to see if a solution could be worked out without resorting to legal action.
The European Commission declined to comment.
A draft of the planning bill was published in March by Deputy Prime Minister and Housing Secretary Angela Rayner. She hopes it will launch a construction boom and help meet Labour’s goal to build 1.5 million new homes, as well as release major infrastructure projects from long-winded planning procedures.
A spokesperson for the U.K. Ministry of Housing, Communities and Local Government said: “We are clear that change is needed if we are to halt the decline in the state of our environment, but also deliver the homes and infrastructure we need. Through the Nature Restoration Fund, we will establish a new approach that will allow us to move beyond the current environmental status quo, securing meaningful, lasting improvements for nature.”