The deputy prime minister has abandoned plans to allow parliament to approve major infrastructure projects, such as new motorways or airport runways.

In a statement to MPs, John Prescott said such a move would not be "the best way forward".

Prescott also set out details of his £1.1 billion plan to tackle the growing housing crisis, including the construction of 200,000 new homes in the South East.

Forum Response: British Retail Consortium

David Smith, said: "We are pleased that the government chose to listen to our concerns on this subject. Today's announcement to abandon legislation for a development tariff is a victory for the BRC's campaign, the retail sector and for all those with an interest in regeneration, job creation and sustainable development.

"Retail is an essential element for any thriving, sustainable community and planning needs to account for this. Additional public funding for affordable housing and the improved procedures outlined today for regenerating brown field land could not only benefit retailers but the communities that they serve."

"Despite the pledge of extra funding for planning, without detailed proposals to bolster the recruitment, training and education of the planning profession or a set of qualitative targets for planning decisions, we remain concerned about real improvements to the system. However, the proposal that all local authorities should have an agreed development framework by 2006 is a step in the right direction.

"The BRC remains opposed to plans to limit planning permissions to three years, to refuse repeat applications and to ban twin tracking before clear improvements to the planning system are in place."

Forum Response: Royal Institution for Chartered Surveyors

A spokesman for RICS told ePolitix.com: "The targets announced are ambitious but also ambiguous. Whilst the package may not be the perfect solution at least government has finally taken significant steps in the right direction.

"It is now vital that the comprehensive long term reforms promised later this year really do satisfy increasing demand for affordable housing, before planning is shelved for another 50 years."Forum Response: ShelterBen Jackson, director of external affairs at Shelter, told ePolitix.com: "Although the commitment to housing and planning is extremely welcome, the key priority must be to house those most in need - homeless people and families.

"Intervention from central government on planning at a regional level is particularly welcome. This will ensure that local councils fulfil their obligation to build new homes, regardless of campaigns from nimbyist lobbies."

Forum Response: CABE

Jon Rouse, chief executive of CABE, told ePolitix.com: "CABE welcomes the deputy prime minister's statement though is disappointed that there is no specific mechanism in place to ensure new housing developments will create places where people want to live.

"The government must oversee that the money invested delivers high quality mixed-use schemes - liveable neighbourhoods not monotonous housing estates. CABE will be working with ODPM over the summer to ensure that those quality standards are met."

Forum Response: National Trust

Tony Burton, director of policy and strategy at the National Trust, told ePolitix.com: "Effective planning is central to environmental protection and urban renewal. The National Trust knows from bitter experience that it is impossible to protect even its own properties without a strong planning system.

"The government's welcome rethink on planning reforms backed by a renewed emphasis on urban regeneration and high quality development will help avoid looming controversy and inject new confidence into the system.

"Concerns remain about the gap in strategic planning below regions, the need for a skills drive for planners and the impact of free-for- all business planning zones but we welcome today's statement as a positive advance for the future of both town and country."

Forum Response: National Housing Federation

Jim Coulter, chief executive of the National Housing Federation, told ePolitix.com: "We are pleased that housing figures highly on the government's agenda, and welcome the resources being committed to the housing programme. After 20 years of under-investment in housing, we need to build on the start the government has made today to restore investment to effective levels.

"We welcome the commitment to building more affordable homes, and housing associations are well placed to help government money go further by working quickly to raise private finance and capturing equity value on land for community benefit.

"The new programme needs to balance the demands of providing homes for the low paid to rent and helping key workers get a foot on the ladder with a range of housing options. We must ensure that the supply of new affordable homes is fed across all the regions where there are shortfalls."

Forum Response: Freedom to Fly

A spokesman for Freedom to Fly told ePolitix.com: "We very much welcome the government's commitment to a faster and more effective process for arriving at decisions on developments in the national interest, such as new runways."As the Terminal Five fiasco demonstrated, the current planning system is often slow and ineffective - putting British consumers and the economy at a disadvantage. We need to have a system which meets both national and local needs."With demand for air travel due to double within the next 20 years, we certainly need to plan ahead properly for sustainable growth."