There were few surprises in Rachel Reeves’ speech to business leaders at Siemens Healthineers in which the Chancellor outlined plans to ‘go further and faster to kickstart economic growth.’ Throughout the last week Labour have published a number of announcements outlining plans to introduce the Planning and Infrastructure Bill into Parliament in the Spring; reduce the number of challenges to infrastructure planning from three to one; and introduce a Nature Restoration Fund to change the way funding for the mitigation of, or compensation for environmental harm associated with infrastructure project is delivered.
Describing her ‘shock’ at how slow the planning system is, and how long it takes to get things done, Reeves said the government was making progress on its manifesto promises including raising housing targets, reforming green belt policies and introducing grey-belt planning.
But there was said Jerry Mulle, UK MD of Ohpen, a core banking platform for financial services providers, a glaring omission regarding clarity on mooted mortgage reform.
“The Government (and the Financial Conduct Authority) must provide guidance on affordability for the mortgages sector. Currently, the nature of the affordability regulation doesn’t specify how this should work. Hence, whilst there are no hard and fast rules, lenders are loathe to test the waters in court.
“Right now, there’s a significant number of people paying monthly rent above what would be needed for a mortgage, yet are still failing the affordability rules – and sadly, the Chancellor failed to clarify this today. It’s imperative that the FCA and Government can give guidance and counsel on current (and anticipated) rent levels that are an acceptable measure in assessing affordability. Failing to provide this will leave the mortgage industry, homeowners (both prospective and current), brokers, and lenders with plenty of questions on how serious the Government is when it comes to domestic growth plans.”
Reacting to the speech Alison Ogley, Planning Law Partner at Freeths, Said:
“The continued commitment from the Chancellor in support of major infrastructure projects is to be welcomed. It will be imperative now to ensure that DEFRA and Steve Read are able to swiftly progress with the proposed amendments to the environmental impact assessment which have been awaited for some time, dating back to the previous Government.
“The Chancellor clearly understands the pressing and critical demand for investment in the UK’s infrastructure and, should the Governments proposals for reform to the national infrastructure planning system be quickly progressed, this will support the realisation of these ambitions. It is useful that the Government appears to understand that development and environmental protections are capable of being mutually consistent. However, much more work is required to ensure that the planning system is geared towards achieving these objectives rather than the present position where increased litigation based on environmental issues is used to delay and frustrate development often inadvertently holding back schemes which could in fact deliver environmental improvements.”
Penny Simpson, Environmental Law Partner at the firm added:
“Rachel Reeves’ “further and faster” commitment today to legislative changes to support development and economic growth is welcomed. Freeths law firm is involved in a number of high profile cases, including National Significant Infrastructure, where there is a desperate need to unlock significant consenting and delivery problems. This can and should happen hand in hand with maintaining environment standards. The Government’s announcement today of a strategic system by which offshore windfarm developers can provide environmental compensation measures is an example of a creative solution which should be investigated for potential application on a wider basis. In making changes the Government should embrace, utilise and protect the incredible work of many natural capital entrepreneurs who already provide ready-made solutions for developers whilst also serving to protect the environment and restore nature – these people are ahead of the game, having already contributed to faster development and nature recovery through the UK’s existing and thriving natural capital economy.”
Steve Wood, CEO at the National Housebuilding Council (NHBC) welcomed housing growth plans and highlights urgent focus needed on skills to deliver quality growth
“The National Housebuilding Council (NHBC) welcomes the significant ambition presented today by the Chancellor. Getting Britain building again is essential for growth, and as the UK’s leading warranty provider for new build homes, we are encouraged to see the government’s commitment to removing blockages in the planning system including in the Oxford-Cambridge corridor.
“The key to delivering any of this is tackling the chronic skills shortage in construction. We need to see a similar focus on the skills gap as well as planning reform. NHBC is shaking-up house-building training, with its investment of £100m in the launch of 12 new multi-skill training hubs across the UK. These hubs will produce tradespeople who will support the house-building sector’s productivity by delivering quality new homes when and where needed.
“NHBC’s national network of multi-skill hubs will build on our current bricklaying hubs which are already upskilling the existing workforce, as well as a new generation of tradespeople. Their expertise will be at the heart of delivering government’s ambitious 1.5m new homes target. We are already seeing apprentices at the NHBC Training Hub in Cambridge qualifying in 14-18 months, many with distinctions. These tradespeople, who have undertaken our industry-recognised and immersive training are now supporting the local workforce to build on the Chancellor’s growth plans for the region.”