THE interim report of the Barker Review has been endorsed by the CBI, which says it is a welcome critique of the country's planning system.

According to a CBI survey, 69 per cent of firms are dissatisfied with the record of local authorities in improving the planning service.

Malcolm Hyde, CBI South East regional director said: "A clear, fair and democratically-accountable planning framework is vital in creating sustainable communities on a small and crowded island.

"But the current planning regime is serving neither the economy nor the nation as well as it should."

The Review will now explore a series of issues before making its final recommendation. It will try to develop proposals which make the planning system more efficient in delivering high quality and sustainable outcomes while providing value for money.

Mr Hyde added: "The South East is the powerhouse of Britain but is currently being held back by a planning system that fails to respond to the opportunities presented by business who are eager to invest and make this country a commercial success.

"For many businesses seeking to expand or locate in the UK, planning is still far too complex and slow. Despite recent reforms, the system has not kept pace with the demands of an increasingly global economy, in some cases costing the UK jobs and opportunities.

"Pfizer, the world largest pharmaceuticals group, is a costly example. The company abandoned a plan to locate its European headquarters in Surrey, in favour of Germany, because of cumbersome planning rules.

"Under the current regime big, complicated projects can be very difficult to get off the ground. Where there are major projects essential to the future of the UK, such as power stations and transport infrastructure, there must be a better balance between local interests and national need.

"We must learn the lessons from Heathrow Terminal Five and Dibden Bay port."

The final Barker Report is expected to be published in late 2006.