To help companies generate jobs and homeowners make improvements to their homes, planning fees will be kept at their current levels. The money saved will provide a valuable cash boost for developers to invest in new projects.

Mr Healey also confirmed that fees for planning appeals will not be introduced this year. This will avoid any further burdens on businesses.

This will mean that businesses will not have to pay for their decision to be reviewed by the Planning Inspectorate if their applications are rejected, and will give companies confidence to expand their business.

John Healey said:

"At a time when investing in new developments is difficult and when access to funding is hard, it would be wrong to increase the costs of developers who will help drive economic recovery. That's why I've decided to freeze planning fees and put appeal fees on ice.

"I recognise that as we start to work through economic recovery, we need to do what we can to keep builders on construction sites and keep plans on the table. It is important that we react to the economic circumstances and listen to the needs of people, industry and developers and we have done just that."