Policy & Politics Update

Property, Transport, Environment and Infrastructure

3rd September 2012

Property, planning and regeneration

Neighbourhood jobs and homes fund launched The Minister of State for Decentralisation and Planning Policy, the Rt Hon Greg Clark MP, unveiled on 29 August new planning powers that will give neighbourhoods extra funding to help bring in new jobs and homes. As part of the plan, a 10 million fund has been made available to allow local authorities to finalise plans for homes, businesses and facilities in their neighbourhood brought forward by local people. (Source: DCLG) Plans for 22,600 homes given green light at Ebbsfleet On 29 August it was announced that, following a ten year delay, plans for 22,600 homes in Kent will now go ahead after a deal was reached by ministers, councillors and developers. It is hoped that the development, which is set to be delivered over the next 20 years on a brownfield site in Ebbsfleet, will deliver up to 60,000 jobs. (Source: DCLG) Government schools programme delayed It was announced on 29 August that the governments schools programme has been subjected to further delays, with the first schools funded by the private finance initiative (PFI) unlikely to come forward until Q1 2013. While some of the 42 proposed schools are expected this year, these have been funded by additional direct capital grants as opposed to PFI. (Source: Building) Government austerity plans reduce industrial output Research by Designing Buildings Wiki has shown that the coalition governments austerity measures have caused industrial output to fall by nine per cent compared to a decade ago. The report, entitled The State of UK Construction August 2012, published on 29 August, has revealed that, in order for total output to remain at its current level, the private sector will have to grow by more than 333 million a quarter to make up the public sector shortfall. (Source: Building Design) Government urged to invest 4 billion in housing A paper written by interdealer broker Tullett Prebon, entitled Building a road to recovery? Why Britain must re-think housing policy, has called on the government to put 4 million of capital investment into getting local authorities and housing associations to build more homes. The study, published on 24 August, states that a national house-building programme is one of the few ways in which the government can kick-start the economy. (Source: Inside Housing) UK construction market at risk of failure owing to underbidding The UKs largest private monitoring and evaluating contractor, NG Bailey, has warned that the UK construction market is heading for significant failure because of the practice of underbidding by contractors. The warning, given on 31 August, suggests that a number of companies could go bust in the next two years because of the risks being taken by contractors in order to secure business. (Source: Building) House prices increase in August The housing market was taken by surprise on 31 August when Nationwides Housing Price Index showed that house prices increased by 1.3 per cent in August 2012. The increase represents the biggest monthly rise since January 2010 and leaves the average house costing 164,729, only 0.7 per cent lower than this time a year ago. (Source: Nationwide)

Transport
Government reiterates opposition to Heathrow third runway On 29 August, the Secretary of State for Transport, the Rt Hon Justine Greening MP reiterated the governments opposition to a third runway at Heathrow. The pledge came in response to claims from MPs of the All Party Parliamentary Group on Aviation that the failure to expand the London transport hub is harming the UKs economic potential. (Source: BBC)

Energy and environment

Opposition campaign to wind farms not backed up by evidence A study by the Institute for Public Policy Research entitled Beyond the bluster: Why wind power is an effective technology, has found that opposition to wind farms on the basis of efficiency and reliability is not supported by evidence. The report, published on 30 August, has found that wind farms, opposed by many Conservative backbenchers, can reduce carbon emissions, are reliable, pose no threat to energy security and are technically capable of providing a significant proportion of the UKs electricity supply. (Source: IPPR) UKs first CCS project must be completed by 2016 The UKs first carbon capture and storage (CCS) project must be completed by 2016 in order to avoid the country becoming a runner-up in low-carbon technology, according to a statement made by Parliaments Energy and Climate Change Select Committee on 29 August. (Source: Utility Week) Incentives to build the green economy working On 30 August, the think-tank Green Alliance released a report, entitled Green economy: a UK success story, stating that the UK is successfully building a green economy by creating long-term market incentives for green goods and services. The report, based on official government figures, has shown that the private sector and low-carbon industries have helped the sector grow consistently since 2008. (Source: Edie)

Other news
UK economy growth forecast cut The Confederation of British Industry (CBI) announced on 30 August that it was cutting its growth forecast for the UK economy from an increase of 0.6 per cent to a contraction of 0.3 per cent in 2012. The group expects the economy to grow by 1.2 per cent in 2013, a reduction from its forecast of two per cent made earlier in the year. The British Chambers of Commerce has concurred with the CBI, predicting the economy will shrink by 0.4 per cent in 2012, and has called on the government to invest in more infrastructure to rectify the situation. (Source: CBI) Squatting now a criminal offence From 1 September, squatting became a criminal offence with offenders facing six months in jail and/or a 5,000 fine. The move was welcomed by ministers who said that the new law would offer better protection for homeowners. (Source: BBC)

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