Comment
Autumn Budget 2017
Promise to the next generation
The acknowledged existence of a ‘housing crisis’ has been a common theme in budget statements going back over a number of years. Central concerns relating to the political power that younger voters may wield in the next election has in no small part led to the Government making sure that it appears to be seen to be addressing this challenge ‘head-on’. The budget certainly includes a clear recognition of the issue with some encouraging measures for those in the house-building and development industry.
In ‘choosing to build’ the Chancellor recognised a need to provide 300,000 homes per year. It is important to set this in the context of the recently consulted upon proposed method for standardising the calculation of local housing need which indicated a ‘need’ for only 266,000 homes per year. This being a result of the application of a policy ‘cap’ being applied which strikes at the heart of the tensions within Government as to how to meet the need for housing.
The budget makes available over £15bn of support for housebuilding over the next five years. Alongside these additional monies the removal of Stamp Duty for first time buyers was one of the biggest surprises and one which will be expected to have a positive impact on the market. Equally a commitment to delivering five new settlements is also to be welcomed as a part of a long term vision. In general terms the planning reforms show a clear move towards increasing the powers of Government, with an example being the power to directly instruct local authorities to produce joint statutory plans. A commitment to consult on the strengthening of the Housing Delivery Test by setting the threshold at which the presumption in favour of development applies at 75% of housing delivery by 2020 is also welcomed.
However, whilst the Chancellor was clear to recognise the important role that the supply of new land will play in providing the homes that are needed, there was a clear statement that this would not be at the cost of losing protection of the Green Belt. The continued failure of the Government to explore this issue means that the impact of reform is going to continue to be constrained. This is highlighted, for example, through the 15 authorities identified for intervention with 80% of these containing Green Belt. The route the Government takes to intervene in these plans will be closely observed.
The Chancellor was clear to emphasise Britain’s leading role in a technological revolution with the factory floors and business parks across the country firing on all cylinders. With investment in artificial intelligence and driverless vehicles, there are clear links to growth in the logistics market – albeit not directly referenced. He included subtle references to supporting logistics operations through limiting tax and cost impacts on ‘van’ drivers and shows his intentions clearly in his letter to Lord Adonis today requesting the NIC to undertake a study on the critical pressures the freight industry is facing.
His reaffirmation of the Government’s commitment to back the Northern Powerhouse, Midlands Engine, and elected mayors will be widely welcomed by those investing in these areas with the £1.7bn identified through the transforming cities fund providing opportunities for targeted investment. We keenly await the release of the promised Industrial White Paper in the ‘next few days’.
If you have any questions about the Autumn Budget 2017, please contact Antony Pollard or Amy Gilham.
22 November 2017
