The government has tabled proposals to partially privatise the planning system, allowing developers to choose who processes their application.
The new clauses were added to the Housing and Planning Bill, which was debated by ministers in the early hours of this morning.
In “pilot schemes” chosen by the secretary of state, developers would be able to select designated alternative providers to process their applications.
Elected councillors would maintain the power to approve or reject planning applications.
Housing minister Brandon Lewis said: “Introducing choice for the applicant enables them to shop around for the services that best meet their needs.
“It will enable innovation in service provision, bringing new resources into the planning system and driving down costs while improving performance.”
The providers would be able to set planning fees, with the secretary of state holding powers to intervene if he believed fees were too high.
The measures were criticised by Labour ministers, including Helen Hayes, who said they undermined local planning departments.
She said: “The new clause introduces the outsourcing of planning applications. It is potentially very damaging.
“It weakens the accountability of local planning services and removes with one hand the fees that the government are enabling local authorities to raise with another.
“Fundamentally, it is a solution to a symptom of the problem of the disproportionate effect of local government cuts on planning departments.
“This symptom will be alleviated by the proper resourcing that a new system of fees will facilitate.
“I therefore urge the government to rethink this proposal, which simply undermines local planning departments.”
