The Chancellor’s Autumn Statement included the following points of note relating to the property sector.
An updated National Infrastructure Plan for 2011 has been published and the Government has committed £6.3 billion to spend on infrastructure projects, including £5 billion within the next three years for road, rail, metro and airport schemes. It is also seeking agreement with pension funds on ways to support their investment into infrastructure projects and aims to secure another £20 billion in this way.The Infrastructure Plan is a UK wide plan, but much of the detailed policy will be decided by the Devolved Administrations.
The commitments in the Infrastructure Plan include:
• an overview of the implementation of the Plan by a Cabinet Committee chaired by Danny Alexander, Chief Secretary to the Treasury
• an undertaking to recognise the interdependency of infrastructure networks and to aim to facilitate cross-sector co-operation
• a requirement that applications for most non-planning consents should be decided within 13 weeks
• ensuring that the key consenting and advisory agencies have a remit to promote sustainable development as soon as the National Planning Policy Framework is finalised
• a review of the implementation of the EU Habitats and Wild Bird Directives to see if their requirements can be streamlined so as to reduce cost and delay to major projects
• giving local authorities more flexibility to support major infrastructure by considering local and exploring new sources of revenue
• investing over £1 billion to tackle areas of congestion and improve the national road network
• increasing capacity and improve performance on the A14 to support proposed housing developments in Northstowe, Waterbeach and Alconbury, including exploring innovative ways of financing, including tolls
• investing more than £1.4 billion in railway infrastructure and commuter links, including £270 million for a rail link between Oxford and Bedford (see separate article) and £390 million on enhancement and renewal works to improve stations and infrastructure
• investing £100 million to create up to ten ‘super-connected cities’ across the UK, with 80-100 megabits per second broadband and city-wide high-speed mobile coverage.
The road schemes include:
• taking forward immediate investment on the A14 to reduce congestion and increase resilience including junction improvements
• funding the A14 Kettering bypass between Junctions 7 and 9
• accelerating the current major projects planned on the M25 (Junctions 23-27)
• investing in major road improvements on the M1/M6 Junction 19
The Government is also providing additional funding for local authority major transport projects and announcing 20 individual projects including a new dual carriageway link road to the south east of Corby. Further projects will be announced in December 2011.
Other points of note include:
• The small business rate relief holiday will be extended to April 2013. Businesses will be able to defer 60% of the increase in business rates bills in 2012/13, to be repaid across the following two years
• The Right to Buy for social housing is to be re-invigorated, with funds generated from sales to be reinvested in new affordable housing
• A new build mortgage indemnity scheme will be introduced to help up to 100,000 families to buy their own home
• A new £400 million Get Britain Building investment fund to progress stalled developments
For further information contact Stephen Home on 01234 362911 or swh@robinsonandhall.co.uk.