Market Insight

Spatial Development Strategies: What they could mean for strategic planning and growth

The Government’s latest planning reforms include proposals to introduce Spatial Development Strategies (SDSs) across England (outside London), representing one of the most significant changes to the strategic planning framework in recent years.
March 19, 2026
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The Government’s latest planning reforms include proposals to introduce Spatial Development Strategies (SDSs) across England (outside London), representing one of the most significant changes to the strategic planning framework in recent years.

The proposals aim to introduce a new layer of strategic, cross-boundary planning designed to better coordinate housing growth, infrastructure investment and economic development across wider functional geographies.

If implemented effectively, SDSs could play a key role in addressing some of the long-standing structural challenges within England’s planning system, particularly where development needs extend beyond individual local authority boundaries, as Sarah Isherwood, Planning Partner at Vail Williams, explains.

A strategic approach to growth

Under the proposals, new SDSs would be prepared by combined authorities, upper-tier authorities and unitary councils, covering plan periods of at least 20 years.

The intention is that these strategies would:

  • Provide a high-level spatial framework for growth across a wider geography
  • Identify strategic locations for housing, employment and infrastructure
  • Help coordinate cross-boundary development decisions
  • Support delivery of the Government’s housing ambitions

This could help address an issue that has long affected plan-making – the difficulty of aligning development strategies across neighbouring authorities, where housing need, infrastructure and economic activity rarely stop at administrative boundaries.

Strategic coordination at a larger geographic scale could therefore help unlock development opportunities that may previously have been difficult to bring forward.

What this could mean for housing delivery

One of the key drivers behind the proposed reforms is the Government’s ambition to accelerate housing delivery across England.

By introducing a strategic planning framework above the Local Plan level, SDSs could help address the long-standing challenge of distributing housing need across multiple authorities, particularly where development markets operate across wider economic areas.

For developers and land promoters, this could potentially:

  • Identify strategic growth locations at a regional scale
  • Support the delivery of larger or more complex development sites
  • Help align infrastructure investment with planned housing growth

However, discussions around how housing numbers are distributed between neighbouring authorities have historically been politically sensitive, and this may remain one of the more challenging aspects of preparing SDSs.

Infrastructure coordination – a potential opportunity

Another potential benefit of SDSs is the ability to better align infrastructure planning with development growth.

Large-scale infrastructure projects, such as transport improvements, utilities upgrades or strategic employment locations, often require coordination across several local authority areas.

A well-prepared SDS could provide a clearer framework for identifying where infrastructure investment is needed to unlock development, potentially improving viability and delivery timescales for strategic sites.

For investors and developers considering longer-term opportunities, this could provide greater confidence around infrastructure-backed growth areas.

Urban regeneration

Delivery will take time

While the introduction of SDSs represents a potentially important shift in strategic planning, delivery will inevitably take time.

Sarah explains:

“Even in areas where Combined Authorities are already established, it is likely to be two to three years before the first strategies are adopted. In locations where governance arrangements are still evolving, or where there have historically been challenges with cross-authority collaboration, this process may take longer.

“Areas with particularly high housing need may also face complex discussions around how development is distributed across local authority areas, which has historically been a contentious issue within strategic planning.”

As a result, SDSs are unlikely to provide an immediate solution to housing delivery challenges, but they could help establish a clearer long-term framework for growth.

Keeping strategy strategic

Another key consideration will be the scope and complexity of the strategies themselves.

The Government emphasises that SDSs should sit within a new strategic policy tier, providing the overarching framework while allowing Local Plans to deliver the detailed development policies.

This distinction will be critical.

Experience of the London Plan demonstrates how strategic plans can risk becoming highly detailed policy documents. At more than 500 pages, the London Plan has often been criticised for its complexity and the level of prescription it places on development.

If SDSs are to succeed nationally, they will likely need to remain clear, concise and genuinely strategic, leaving site-specific policies and development management considerations to the Local Plan stage.

Why this matters for the property sector

For developers, investors and landowners, the introduction of SDSs could ultimately provide greater clarity around the long-term direction of growth across wider economic areas.

Strategic planning at this level could:

  • Identify major growth corridors and development clusters
  • Align transport and infrastructure investment with planned development
  • Provide greater certainty around housing distribution across regions
  • Help unlock sites that rely on cross-boundary infrastructure delivery

“However, the effectiveness of SDSs will depend heavily on how they are implemented, particularly the extent to which authorities can collaborate effectively across political and administrative boundaries.”

Sarah Isherwood, Planning Partner, Vail Williams LLP.
Headshot photo of Sarah Isherwood

Consultation now closed

The Government’s consultation on Spatial Development Strategies closed on 26 March, providing an opportunity for stakeholders to help shape how this new strategic planning layer will operate. It sought views on the proposed SDS geographies, as well as the potential strengths and challenges of the areas identified.

“SDSs could become a key driver of spatial growth strategies over the coming decades and are likely to play an increasingly important role in shaping where and how development comes forward over the coming decades,” concludes Sarah.

For developers, investors and landowners, understanding how these emerging strategic frameworks interact with Local Plans, infrastructure planning and housing delivery targets will be critical when identifying and promoting development opportunities.

The planning team at Vail Williams is closely monitoring the progress of the Government’s reforms and advising clients on how evolving planning policy may influence land promotion strategies, site viability and long-term investment decisions.

By engaging early with emerging spatial strategies and plan-making processes, stakeholders can ensure their interests are represented and that opportunities within future growth areas are identified at the earliest stage.

To discuss how the proposed Spatial Development Strategies could affect your land, development or investment strategy, contact a member of the Vail Williams planning team.