This is basically a lose-lose situation: extra bureaucracy for development projects that actually benefits the local residents (planning applications can get to thousands of pages long, and the whole process takes a really long time [0]), and local residents don't actually get the benefits intended by policies like this. The only people this benefits are those who have a lot of money to throw at things like this.
[0]: https://www.thetimes.com/uk/london/article/shoreditch-works-...
The government benefits by not having to deal with penny pinching developers who can't just make whatever concessions strike their fancy.
Basically their jobs are easier at the expense of the people.