The government has backed an overhaul of the planning process which could save up to £300m a year and reduce the amount of red tape.

The Killian Pretty Review, published this week, called for nearly 40 per cent of minor commercial planning applications to be withdrawn from the system. Other recommendations included a significant reduction in information requirements, simplifying the national planning policy to prevent new policies from over-burdening decision-making and by encouraging council to improve advice and reduce the level of unnecessary consultations.

The review also called for clearer and faster planning obligation agreements and proposed that the main issues are agreed at the pre-application phase to reduce delays and legal costs, especially for major developments. The report said: "Quite simply, the planning application process is too slow and bogged down in unnecessary red tape, to the extent that it acts as brake on key elements of the economy. It is crucial, particularly given today's economic climate, that we tackle this problem.

"In a system dominated by minor developments, even the simple decisions now take far too long. This is massively frustrating for both applicants and council planners with excessive workloads. "We believe that our recommendations - based on extensive discussions with stakeholders - will go a long way to re-energising and streamlining the planning applications process. This will also free up council resources, help economic recovery, and help to ensure that we get the right development, in the right place at the right time."

The review was jointly commissioned by the departments of Communities and Local Government and Business, Enterprise and Regulatory Reform. And was carried out by Joanna Killian, chief executive of Essex County Council and David Pretty, former group chief executive of Barratt Developments. Killian added: "Our proposals won't remove the democratic safeguards but they will free up the council resources to focus on major developments or controversial cases and give councils more freedom to choose how to reach out to people."

The government plans to publish an implementation plan early 2009 in support of he review, setting out in detail how it will respond to the proposals and deliver a less bureaucratic planning application process. Communities secretary Hazel Blears said: "We urgently need to unburden our economy, businesses and overstretched council resources by creating a more proportionate and efficient planning application service.

"The system must keep the safeguards that ensure the right decisions are made but unnecessary red tape and a lack of clarity aren't just annoying, they're costly too. "The Killian Pretty review has provided the government with a comprehensive and authoritative recipe to reduce the bureaucratic burdens in the planning application process that will prevent it hurting our economy and saving us all £300m a year."