The government has published its budget which is based on two strategies, of growth (summarised in its BIS department paper, Plan for Growth), and of fairness (apparently with no corresponding paper); responses are varied, as Heritage Alliance, the link body for England’s non-governmental heritage sector, has provided an invaluable summary of key issues for its members, RTPI fear for the future of England’s places, and Construction Now gathers wider, still mixed, construction sector responses.
Heritage Alliance reports:
Wednesday’s Budget proved to be a mixed bag for the heritage sector. Amongst what he described as ‘the most radical and most generous reforms to charitable giving for more than twenty years’, the Chancellor announced that the Government would simplify Gift Aid administration to an ‘easier’ online system by 2013 and that Gift Aid benefit limits would increase from £500 to £2500 ‘so that charities and museums can say thank you properly’. In a further welcome announcement, Mr Osborne also confirmed that charities will be able to claim Gift Aid on small donations (up to £5000 in total) without filling in any paperwork. On incentivising giving, measures included a pledge that those who leave 10 per cent or more of their estate to charity will receive a 10 per cent discount off their Inheritance Tax rate (to be introduced from April 2012) and a commitment to a 2011 consultation on how to encourage ‘the donations of pre-eminent works of art and historical objects to our nation in return for a tax deduction’. The Government expects these measures will benefit charities to the tune of £300 million.
On the ‘skills gap’, Mr Osborne said that ‘ the Government would be funding a total of 250,000 more apprenticeships over the next four years and opening 24 new University Technical Colleges, which will provide 11-19 year olds with vocational training’.
More debatable was the Chancellor’s rhetoric on the planning system, which he described as ‘a chronic obstacle to economic growth’; echoing earlier similar comments from the Prime Minister and Local Government Secretary Eric Pickles. Amongst a raft of planning reforms, Osborne pledged that ‘from today we will expect all bodies involved in planning to prioritise growth and jobs’; that the Government would ‘introduce a powerful new presumption in favour of sustainable development, so that the default answer to development is ‘yes’; that the Government would ‘localise choice about the use of previously developed land, removing nationally imposed targets while retaining existing controls on greenbelt land’; that it will ‘produce a shorter, more focused and inherently pro-growth National Planning Policy Framework (NPPF)’ by the end of 2011; ‘introduce new powers so that businesses are able to bring forward neighbourhood plans and neighbourhood development orders’; ensure that ‘all planning applications and appeals will be processed in 12 months and that major infrastructure projects will be fast-tracked’ and ‘allow certain use class changes, introduce time limits on applications and pilot, for the first time ever, auctions of planning permission on land’.
Meanwhile the RTPI fears a ‘tin shed Britain’, saying:
‘Changes to planning system announced today will have dramatic effect on character of the country.’
Richard Summers, President of the Royal Town Planning Institute (RTPI), which represents almost 23,000 of Britain’s planning professionals, has attacked proposals in the budget announced today to allow developers to bypass important planning rules.
Richard Summers said: “If sweeping changes announced to the planning system result in the default position being ‘yes’ to development then there is real danger that within a decade we will end up with an England of tin sheds, Lego land housing and US style shopping malls”.
“Where will the incentive be in the future for developers to address issues such as climate change, environmental protection, design quality and affordable housing, if they know that the government has tied the hands of local councillors who will be required to nod through most development proposals. This could mean developers building what they like, where they like, and when they like. It’s a policy that finally buries genuine localism”.
Construction Now says on planning & Green Bank issues:
Chancellor George Osborne has announced a planning shake up and more information on the Green Investment Bank in his 2011 Budget.
He announced that developers will no longer need planning permission to convert commercial property into private dwellings, in the hopes of creating up to 250,000 additional houses or flats. He also announced plans to streamline the system for planning applications and introduce new fast-track planning for major infrastructure and will introduce a new presumption in favour of sustainable development, so that the default answer to development is ‘yes’.
The budget will localise choice about the use of previously developed land, removing nationally imposed targets while retaining existing controls on greenbelt land; pilot a land auction model, starting with public sector land; and introduce a number of measures to streamline the planning applications and related consents regimes removing bureaucracy from the system and speeding it up.
This will include a 12 month guarantee for the processing of all planning applications, including any appeals. It also aims to ensure a fast-track planning process for major infrastructure applications through the Major Infrastructure Planning system; and consult on proposals to make it easier to convert commercial premises to residential.
To accelerate the release of public sector land to support homes and jobs, the Government will work with local authorities to expedite planning decisions for surplus military land and other public sites suitable for housing, also testing ’build now, pay later’ techniques to quicken delivery. Together with the new presumption in favour of sustainable development, these proposals will potentially allow the Ministry of Defence to realise up to £350m of estate disposals and enable delivery of up to 20,000 new homes by 2014-15.
Construction Now reports more widely on sector responses:
The construction industry has been mainly positive in its reaction to the budget, especially welcoming plans to shake up the planning system.
HBF Executive Chairman, Stewart Baseley said: “We are pleased the Government is listening to industry concerns and has recognised the economic and social benefits of building more homes. With Firstbuy, the Government has stepped up with a policy that will help first time buyers, boost economic growth and provide a vital shot in the arm for the house-building industry.
The severity of the housing crisis dictates that work doesn’t stop here. It is crucial that all the announcements are built on, regulation is reduced, land supply increased and the planning system simplified. The Budget shows ministers are listening and serious about tackling our housing crisis. This is a very positive start.
The Chancellor’s commitment to switch to a ‘presumption in favour of sustainable development’ based planning system, where the default answer is ‘yes’, is also a positive statement of intent. If the Government is to meet its commitment to increase housing supply, more permissioned land must be made available.”
However, HBF still believes that further action on reducing regulation is required, to supplement announcements today that the Minister will write to Local Authorities with regards to Section 106 ‘infrastructure tariff’ payments, and on more sensible carbon efficiency targets, if more potential housebuilding sites are to become viable.
Cross-Industry Construction Apprenticeship Task Force Chair, Geoff Lister, said: “More funding for learners is excellent news, but the Government still relies on employers to create the job opportunities for apprentices. We know from a number of state of trade surveys carried out by the industry that confidence among construction businesses is still rock bottom. Therefore employers need to be convinced that they can afford to take on apprentices.
The announcement of funding for 100,000 work experience places is also badly needed by the 938,000 16-24-year-olds not in employment, education or training in England. Funding work experience placements is one way to create a clear path to apprenticeships. The employer can test a person’s suitability for a fully employed apprenticeship, and the young person will gain valuable practical skills needed to enter sustainable employment.”
Simon Rubinsohn, RICS chief economist, said of the changes to SDLT and REITs: “RICS is pleased that the Chancellor has listened to our calls to make changes to stamp duty and Real Estate Investment Trusts (REITs) in order to support investment in house building. The bulk purchase rule change is particularly welcome as it will mean that stamp duty is charged on an average price per unit rather than the total transaction cost.”
On use class change, he added: “RICS welcomes steps to tackle under use of buildings but the wider impact on the commercial property market also needs to be considered. As the economy grows there will be a need for additional accommodation for expanding and new businesses and too many conversions to residential property could mean that appropriate space is not available. This situation could be made worse by the Government’s continued imposition of empty property rates which are significant barrier to speculative commercial property development.”
Sarah Webb, CIH Chief Executive, said: “Our housing market is still in intensive care but this measure to give first time buyers access to a sizeable deposit as an interest free loan is a welcome adrenaline boost. We are currently building fewer than half of the homes we need and anything the government can do to support new house building and support construction sector jobs is welcome.
The £250m fund is a useful short term boost, but it is important that we also address the fundamental question of how to sustain housing supply in the long term. Measures to reform the planning system will have a more significant role in this. We look forward to seeing the details of the programme, but the fact that the government is committing this investment in a budget where there will be few handouts is very welcome and recognises the scale of the problems we face in the housing market.”
Michael Ankers, Chief Executive of the Construction Products Association, said: “We welcome a number of measures that have been brought in to encourage growth in the economy. These include a serious attempt to unblock the planning system, encouragement for sustainable development, opening up economic activity with the introduction of Enterprise Zones and helping first time buyers access the housing market.”
While, Ian Baker, Group Managing Director for Housebuilding at Galliford Try Homes, said: “The announcement that the government will speed up the planning application process, introduce a new presumption in favour of sustainable development and accelerate the release of public sector land to deliver new homes, shows that it has listened to industry. Housebuilders have continued to deliver new homes since the new government was elected in spite of the frustrations and confusion at a local level as policies were scrapped without offering further guidance.”
However, the UK Green Building Council has dubbed the budget’s eco-policies as ‘watered down’.
Paul King, Chief Executive of the UK-GBC said: “In the space of two weeks, this government has gone from a firm commitment on zero carbon homes, to a watered down policy. A zero carbon home will no longer do what it says on the tin. The world leading commitment that new homes would not add to the carbon footprint of our housing stock from 2016 has been scrapped despite a remarkable consensus between industry and NGOs in support of it.
Thanks to a crude de-regulation agenda we now have a policy that is not only anti-green but anti-growth. Low carbon construction has been one of the few sectors showing genuine green shoots of growth. This U-turn will result in loss of confidence leading to lower investment, less innovation, fewer green jobs and fewer carbon reductions. It is a backward step by a government that wanted to be seen as ‘the greenest ever’.”
While, Richard Diment, Director General of the FMB said: “The Chancellor missed an opportunity to support the Green Deal and kick start consumer demand to make our homes greener. Without creating demand in the market for energy efficient improvement it is difficult to see how the Green Deal will succeed when it starts in the autumn of 2012.
Help for the house building industry by the introduction of a government-backed shared equity scheme to help 10,000 first-time buyers is a welcome boost but it is doubtful whether it will help the tens of thousands of small house builders who are struggling to survive in the current market. The announcement to simplify the planning system is long overdue as this coupled with the lack of finance is stifling the house building industry which is delivering half the amount of homes that we need every year to meet current demand.
The announcement that there is to be no new regulation on firms with fewer than 10 staff for three years is welcome news for small builders who have been burdened by excessive regulation and red tape over recent years. However, to be really effective it would be helpful if the Government could go further and cut the existing amount of red tape which is impacting on small businesses. Today’s Budget announced much of what we already knew. It will help many small businesses but it is not going to be a panacea for a quick recovery.”
And Julia Evans, Chief Executive of NFB said: “While this budget helps to keep business afloat, there is very little in there to stimulate growth. With GDP forecast to grow at an even slower rate than originally thought, the NFB is disappointed at the small scale measures announced by the Chancellor today. The construction industry makes a significant contribution to the UK economy but without really helpful measures around lending, procurement and consumer confidence, it will be a long time in recovering, and therefore so will the economy at large.”
For The Plan for Growth see : LINK
For the full detail of all the planning reforms, see paras 1.34 – 2.38 p 29
For the Budget press notice see: LINK
RTPI Article: LINK
Construction Now: LINK
