The planning reforms are set to be rolled out across local councils in England in an attempt to speed up applications and simplify the current complex and bereaucratic system.
The legislation introduces a presumption in favour of sustainable developments and awards communities the right to specify where renewable energy sources such as wind farms should, and should not, be given the green light.
John Cridland, CBI director-general, said: “Future generations will be thankful that the government has held its nerve on this. Having a presumption in favour of sustainable development gets the balance right between supporting jobs and growth, and serving the interests of the environment and society.
“The new framework hands the responsibility back to local communities to decide where new homes, businesses and infrastructure to support them should be built. So the onus is on local authorities to work with people and businesses in their area to develop suitable plans as quickly as possible.
“Let’s be clear, this is not an invitation to concrete over Britain, as some would have us believe. For too long, our planning regime acted as a drag on growth, and this framework lets people decide the future for themselves.”