The Act paves the way for several sweeping changes to the planning regime in England and Wales, including most controversially the abolition of regional strategies and housing targets.

Instead communities will be encouraged to allow housing and other development because they will get community tax receipt cash from the new homes.

This will be ring-fenced to be invested in new community projects.

The Act also allows for the creation of new mayoral Development Corporations in London and powers to elect mayors in 12 cities.

It will also see the abolition of the Infrastructure Planning Commission, and the creation of a new Major Infrastructure Planning Unit, to sit within the Planning Inspectorate.

The legislation also prescribes a new obligation on developers to carry out pre-application consultation for major development schemes.

Legal firm Norton Rose partner Nigel Hewitson said the Localism Act had “the potential to lead to far-reaching changes to the planning system”, but he warned some communities may lack the will or the means to capitalise on the new mechanisms in the act.

“Neighbourhood Development Plans and Orders will be costly to produce and consult on and will have to achieve more than 50% support in a community referendum,” said Hewitson.

The Royal Town Planning Institute welcomed the new Act but warned it would fail to deliver a workable planning system unless robust transition arrangements were put in place.

RTPI president Richard Summers said: “Many issues still need to be clarified, some by legal challenge and others through guidance, but the key issue will be to reduce the continuing uncertainty, cost and delay for the planning system and the development industry.”