UK Planning System Overhaul Needed for Economic Growth, Says Next CEO

The chief executive of Next, one of the UK’s largest retail companies, has called for a radical overhaul of the country’s planning system, arguing that current regulations are stifling economic growth and prosperity. Lord Simon Wolfson, who leads the FTSE 100 retailer, delivered the remarks during a speech at the Centre for Policy Studies conference in London, where he urged policymakers to adopt a market-driven approach to infrastructure and development.

Planning System a “Drag on British Prosperity”

Wolfson described the UK’s planning framework as the “biggest drag on British prosperity,” claiming it creates a “recipe for scarcity” by obstructing the construction of essential infrastructure, including housing, roads, and power stations. He proposed abolishing the existing system entirely and replacing it with a principles-based framework that would allow market forces to determine where and how development occurs.

“The time it takes to get permission, the cost of getting it, and the inability to build what you really need to build is holding back industry and society,” Wolfson said, citing his own company’s struggles with securing planning approvals for warehouses and stores. He argued that the current system, established in 1947, not only hampers business expansion but also drives up the cost of housing, exacerbating social and economic challenges.

“I’m not claiming that people are perfect or that markets are infallible. Of course, they’re not, and the rules really matter. But with the proper framework, a free people can achieve so much more than can be imagined by governments.”

Lord Simon Wolfson, Chief Executive of Next

Criticism of Labour Policies and Economic Outlook

Wolfson also took aim at the Labour government’s economic policies, particularly its stance on North Sea oil exploration and reforms under the Employment Rights Act. He suggested that the same market-driven principles should apply to energy regulations and workers’ rights, warning that excessive restrictions could further hinder growth.

The Next CEO’s remarks come amid growing pessimism about the UK’s economic trajectory. Two major international institutions, the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD), have delivered critical assessments of the government’s growth plans. According to a report cited in Wolfson’s speech, the UK is projected to suffer more economic damage from the Iran war than any other G7 nation.

Chancellor Rachel Reeves has centered her economic strategy on planning reforms, closer trade ties with the European Union, and widespread adoption of artificial intelligence. However, Labour MPs from centrist and soft-left factions have joined opposition groups in criticizing Reeves’ proposed £60 billion in tax increases, which they argue will burden businesses and households.

Call for Post-Election Reform

Despite acknowledging that the current government is unlikely to win the next election, Wolfson urged opposition parties to prepare bold legislative reforms. He framed the planning overhaul as a critical step toward revitalizing the UK economy, arguing that the country’s potential prosperity has been stifled by regulatory inertia.

“It is my contention that when we can shake off its economic lethargy and return to the prosperity that this country can deliver and deserves.”

Lord Simon Wolfson

Wolfson’s proposal aligns with broader calls from business leaders for structural changes to boost productivity and investment. However, critics of market-driven planning systems warn that unchecked development could lead to environmental degradation and social inequality, particularly in housing. The debate over the UK’s planning framework is expected to intensify as policymakers weigh growth objectives against regulatory safeguards.

The speech underscores the growing tension between corporate leaders advocating for deregulation and a government attempting to balance fiscal responsibility with economic stimulus. With the UK facing sluggish growth and geopolitical pressures, the outcome of this policy debate could shape the country’s economic trajectory for years to come.