Free schools setback as ministers publish planning rules

Idea of letting schools set up in other premises without 'change of use' planning permission diluted after public consultation

Campaigners hoping to set up free schools face a setback after ministers diluted proposals to let schools open in shops and houses without planning permission.

Finding a space in which to set up is one of the major obstacles for free school groups, especially in London where the need for more school places is acute.

The government published rules which say councils should have a "presumption" in favour of state-funded schools, but they will still be able to veto new schools on planning grounds.

The announcement follows a public consultation on proposed changes which had an overwhelmingly hostile response to the idea of letting schools set up in shops or business premises without seeking "change of use" planning permission.

Rachel Wolf, director of the New Schools Network, said she feared the retreat could skew the free schools programme towards wealthier areas.

She said: "Hostile local councils are using planning rules to block Free School groups in areas which desperately need them. Without planning reform only favourable councils – usually in wealthier areas – will see large numbers of new schools.

"The reforms announced today should help in many circumstances, but they won't help in all. The government needs to agree to stronger measures if it wants Free Schools in every community that needs one – including allowing all buildings to be used for Free Schools without requiring [council] permission."

Campaigners believe the changes may still help free schools as councils may have to pay costs if they lose an appeal.

A source close to the education secretary, Michael Gove, pointed out that central government would be able to overturn a council's decision. Appeals against a local authority blocking a free school can be referred to the Department for Communities and Local Government. But a delay could create an opportunity to sell off the land picked for a school site.

Free school backers in Camden were angered by their council's decision to sell off empty hostel buildings before a decision was made about their proposal.

The council said it would put the proceeds of the sale towards repairing existing schools and children's centres.

In a statement Gove said: "We urgently need more good school places. Red tape must not be a barrier … these important changes will allow talented teachers, parents, charities and Academy sponsors to set up excellent new schools more quickly, responding to parental demand."

Andy Burnham, the shadow education secretary, said : "Michael Gove's 'anything goes' approach to planning new schools has been roundly rejected.

"People are saying loud and clear that free schools must not mean a free-for-all. There needs to be proper planning and a continuing role for the local authority."

A total of 13 free schools have signed funding agreements with the Department for Education, while a further 17 have had their business cases approved.

Wolf, of the New Schools Network, has predicted that 100 free schools could be created by next year, and several hundred by 2015.