Settlement Hierarchy in The UK Planning System
The position of a settlement in the hierarchy is intended to inform decisions about new developments such as housing. Rather than define the hierarchy by population, an alternative way to construct the hierarchy is based on the services that are available within each settlement. Settlements are described as "level 1", "level 2", etc. rather than using terms such as village or town. The Government planning statement (PPS3) does not specifically mention "settlement hierarchies", but talks about the availability of services to small rural settlements. The term is used a number of times in the guidance for preparing evidence for planning decisions.
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