Kate Barker, the Bank of England adviser who is researching planning and the economy, is expected to be in favour of an independent board to approve infrastructure projects such as nuclear power stations.

Barker's report, commissioned by the Treasury and due within the next week, is expected to explore a new structure for approving power stations and airports, as part of wide-ranging reforms of the planning system.

Building has learned that Barker is impressed with the system used in the Republic of Ireland, where infrastructure decisions have been taken away from politicians and given to an independent board of experts, much in the same way that the chancellor Gordon Brown ceded control over interest rates to the Bank of England in 1997.

Currently, ministers have the final say over such projects.

It is understood that that Barker is also likely to suggest:

  • Easing restrictions on out-of-town retail development. If taken up, this would be a U-turn in government policy.
  • Giving local communities greater financial incentives to accept development.
  • Reducing the number of statutory protection regimes for wildlife and landscapes.
  • Freeing councils by removing small householder applications from the planning system.
But she is expected to stop short of a complete overhaul of the system.

The report will spark a fierce backlash from environmentalists

Barker told a recent private seminar organised by the Town and Country Planning Association that the planning system is not fundamentally flawed. She said the imbalance between supply and demand in the provision of business space was less acute than stated in her earlier housing review.

Nevertheless, the report looks likely to spark a backlash from environmental groups, who will resist any move to take decisions out of the hands of politicians.

The recommendation is expected to be welcomed by Brown who pledged in his annual Mansion House speech in the City of London last week to reform the planning of infrastructure.

Brown has repeatedly expressed concerns that UK retailers were less productive than their overseas counterparts because of planning rules force them to locate in cramped town centre sites.

When completed, the report will to Brown for his comments.