Planning permission: when your business needs it

What planning permission controls

Planning permission regulates how land and buildings are used in England and Wales. If you want to start a business in premises, change how a building is used, or make physical alterations, you may need permission from your local planning authority.

Operating without required permission is a serious matter. Your local authority can issue enforcement notices ordering you to stop trading and reverse any changes. Ignoring these notices is a criminal offence carrying unlimited fines.

The good news is that many business activities are now covered by permitted development rights, meaning you can proceed without making a formal application. Understanding what's permitted and what requires approval will save you time and money.

When you need planning permission

You typically need planning permission for:

• Change of use - Converting a building from one use to another (for example, residential to commercial), unless it falls within permitted development
• Building works - Extensions, significant alterations, or new construction that goes beyond permitted limits
• External changes - New shopfronts, external cladding, or changes that affect the building's appearance
• Signage and advertisements - Most business signs require advertisement consent (a separate but related application)
• Listed buildings - Almost all changes to listed buildings require Listed Building Consent, even internal alterations
• Conservation areas - Extra restrictions apply to demolition, external changes, and signage

Use Classes explained

The Use Classes Order groups different types of land and building use into categories. Understanding which class your proposed use falls into is essential because:

• Changing to a use within the same class generally does not require planning permission
• Some changes between different classes are allowed under permitted development rights
• Other changes require a full planning application

Class E - Commercial, business and service

Introduced in September 2020, Class E is the most important category for most businesses. It combines what were previously separate classes into one flexible category:

• E(a) - Shops selling goods (except hot food)
• E(b) - Restaurants and cafes serving food and drink on premises
• E(c) - Financial services, professional services, and other appropriate services
• E(d) - Indoor sport, recreation or fitness centres
• E(e) - Medical or health services (clinics, dentists)
• E(f) - Creches, day nurseries and day centres
• E(g) - Offices, research and development, and light industrial processes

The key benefit: you can change between any of these uses without planning permission. A shop can become an office, a cafe can become a gym, an office can become a clinic - all within Class E.

Class F - Local community and learning

• F1 - Learning and non-residential institutions (schools, museums, libraries, places of worship)
• F2 - Local community uses (small shops under 280 sq m, community halls, outdoor recreation)

Sui generis - In a class of its own

Some uses don't fit any class and are 'sui generis' (unique). These always require planning permission to change to or from:

• Pubs, drinking establishments and wine bars
• Hot food takeaways
• Cinemas, concert halls, bingo halls, dance halls
• Petrol filling stations
• Betting shops and payday loan shops
• Nightclubs and casinos

Important: Opening a pub, takeaway or nightclub will nearly always require a planning application, as well as other licences.

Permitted development rights for businesses

Permitted development rights allow certain changes without a planning application. They're set out in the Town and Country Planning (General Permitted Development) (England) Order 2015.

Changes within Class E

You can freely change between any use within Class E. A retail shop can become an office, a cafe can become a gym, an office can become a nursery - without permission.

Commercial extensions and alterations (Class A, Part 7)

For Class E premises, you can extend or alter the building under permitted development, subject to limits:

• Floor space increase must not exceed 50% of the original building OR 100 square metres (whichever is smaller)
• Alterations must be on the ground floor only
• Cannot extend beyond the front of the building
• Cannot create or alter a shopfront
• Cannot install security grilles or shutters on a shopfront
• Cannot be within 2 metres of residential property boundary
• Cannot be within the curtilage of a listed building

Class E to residential (Class MA)

Commercial premises can be converted to residential use under permitted development, but you need prior approval from the council. The building must have been in Class E use for at least 2 years. This doesn't apply in protected areas (national parks, AONBs, World Heritage Sites).

Home-based businesses

You can usually run a business from home without permission if:

• The home remains primarily a residence
• There's no significant increase in traffic, noise or visitors
• You don't make external changes
• No nuisance to neighbours

You can build an office or workshop up to 40 square metres in your garden without permission (subject to conditions).

When permitted development doesn't apply

Even if your change would normally be permitted development, you may still need planning permission if:

• Article 4 direction applies - Your local authority has removed permitted development rights for your area. Common in conservation areas, town centres, and historic districts.
• Listed building - Listed Building Consent is always required for any works, internal or external
• Conservation area - Additional restrictions apply
• National park or AONB - Protected landscapes have tighter controls
• Planning conditions - Previous permissions may have conditions restricting use or development

Always check with your local planning authority before assuming permitted development applies.

Certificate of Lawful Use

If you're unsure whether your current or proposed use is lawful, you can apply for a Certificate of Lawful Use or Development. There are two types:

CLEUD - Certificate of Lawful Existing Use or Development

Confirms that an existing use or building work is lawful because:

• Planning permission was granted and properly implemented
• The use has continued for long enough that enforcement action is no longer possible
• The use is permitted development

Time limits for enforcement (development before 25 April 2024):

• Building works - 4 years from substantial completion
• Change of use to single dwelling - 4 years
• Other changes of use - 10 years of continuous use

Important change: From 25 April 2024, the 4-year rule was replaced by a 10-year rule for all breaches. Development after this date requires 10 years continuous use before it becomes lawful.

CLOPUD - Certificate of Lawful Proposed Use or Development

Confirms that a proposed use or development would be lawful - essentially giving you certainty before you proceed. Useful for:

• Confirming permitted development applies to your proposal
• Establishing that a change of use is within the same use class
• Providing evidence to lenders, investors or purchasers

Certificate of Lawful Use: key points

• Application fee is half the standard planning fee
• Decision typically within 8 weeks
• You must provide evidence to support your application
• The certificate is binding on the local authority - they cannot later take enforcement action for the use or development certified
• It does not exempt you from Building Regulations, health and safety, or licensing requirements
• Making false statements is a criminal offence and the certificate can be revoked

How to apply for planning permission

If you do need planning permission, here's the process:

Application fees

Planning fees are set nationally (England). Common business application fees:

What happens if you operate without permission

If you start trading without required planning permission, you're at risk of enforcement action:

• Enforcement notice - Orders you to stop the unauthorised use or reverse changes within a specified time (usually 28 days to 6 months)
• Stop notice - Requires immediate cessation of the activity
• Breach of condition notice - If you're operating outside the conditions of an existing permission
• Injunction - Court order to prevent continuation. Breach is contempt of court.

Penalties: Unlimited fines in the Crown Court. Continued operation after an enforcement notice is a criminal offence. In serious cases, imprisonment is possible.

Retrospective applications: You can apply for permission after starting a use, but you're not in a strong position. The council may still take enforcement action while considering your application, and retrospective applications are often refused.

Always get permission before you start, not after.

Wales and Scotland: key differences

Wales

Wales has its own planning legislation but the Use Classes system is similar to England. Key differences:

• Wales did not adopt all the 2020 Use Class changes (Class E) immediately - check current Welsh regulations
• Different permitted development rights may apply
• Applications go to Welsh local planning authorities
• Appeals are to Planning Inspectorate Wales

Scotland

Scotland has a separate planning system under the Town and Country Planning (Scotland) Act 1997:

• Different Use Classes Order (Scotland)
• Different permitted development rights
• Applications to Scottish local authorities
• Appeals to the Scottish Ministers

If operating in Scotland, consult Scottish Government planning guidance and your local Scottish planning authority.