Policy & Politics Update

Property, Transport, Environment and Infrastructure

29th October 2012

Property, planning and regeneration

Towns offered support to transform their high streets On 23 October 2012, Mark Prisk MP, Minister of State for Housing and Local Government, announced that new support will be available to help towns transform their high streets. Over 300 Town Teams have signed up to become Town Team Partners and will benefit from a package of support which includes help from the government as well as advice from leading retail experts. (Source: DCLG) Olympic planning legacy chairman announced Philip Lewis, chief executive of the property division of Kirsh Group, has been named as chairman of the London Legacy Development Corporations (LLDC) planning committee. The committee, made up of six LLDC board members and five local councillors, will be responsible for determining applications for the Olympic Park and surrounding areas as well as listed building and conservation area consents. Lewis said the committee intends to play a "crucial role" in plans for the area to "create a new part of the city". (Source: Planning) DEFRA sets up expert contamination panel The Department for Environment, Food and Rural Affairs (DEFRA) has set up an expert panel to advise local authorities on whether or not land earmarked for building is legally contaminated, following the publication of DEFRAs revised Contaminated Land Statutory Guidance in April 2012. The panels work will be used to develop case studies for the wider sector as evidence of best practice, helping to promote consistency in decision-making. (Source: Defra) NFB releases new procurement report A new procurement report from the National Federation of Builders (NFB) has highlighted that bidding for public sector construction work remains time-consuming and costly despite efforts to simplify the process. The report, released on 23 October 2012, found that 62 per cent of respondents have difficulties with the prequalification process while 40 per cent are spending over four weeks completing pre-qualification questionnaires. (Source: Building) FSA announces tougher rules on mortgage lending The Financial Services Authority (FSA) has confirmed that tougher rules on new mortgage lending will not come into force until 26 April 2014. The new rules, the outcome of the FSAs Mortgage Market Review (MMR), will prevent future borrowers ending up with a mortgage they cannot afford, with their ability to repay lenders coming under greater scrutiny. Martin Wheatley, managing director of the FSA and CEO-designate of the Financial Conduct Authority (FCA), explains: These new rules will help create a more sustainable market that works well for everyone, whether they are a borrower or a lender. (Source: FSA) Construction levels continue to fall The latest RICS Construction Market Survey, released on 24 October 2012, shows that construction levels continued to fall in the three months to September; a clear sign that the government must start to deliver on its housebuilding initiatives. With the sector failing to see any significant growth in almost five years, the industry is hoping that the governments 50 billion stimulus package will give the housing sector a much needed boost. (Source: RICS)

UK economy returns to growth Figures from the Office of National Statistics (ONS), released on 25 October 2012, show that the UK economy returned to 1 per cent growth in the third quarter. Although this is the strongest quarterly growth since 2007, the underlying pattern is still one of subdued economic expansion with the economy no larger than it was a year earlier despite a boost from Olympic and Paralympic ticket sales. The figures also revealed that the construction industry was the only sector of the economy which continued to shrink over the summer with output declining by 2.5 per cent. (Source: ONS) Cardiff growth plan to build 45,400 new homes On 25 October 2012, councillors in Cardiff approved plans for the largest expansion of the city for more than half a century. The new Local Development Plan (LDP), which replaces the adopted Existing Plans for Cardiff, proposes to build 45,400 new homes by 2026, with the Welsh capital's population predicted to top 400,000. The blueprint also sets out investment in public transport after a warning traffic will rise by a third, increasing journey times by 40 per cent. (Source: Cardiff Council) Scottish construction: Building for the Future The Scottish construction industry has launched a new strategy document, Building for the Future, which aims to increase productivity and exports in the sector by 10 per cent over the next four years. The strategy, launched at the Construction Scotland and BRE Scotland joint annual conference on 22 October 2012, will be driven forward by a new Construction Scotland industry leadership group which is being led by Balfour Beatty managing director, Tim Clarke, as chairman. (Source: Scottish Enterprise)

Transport
National Audit Office publishes local transport funding overview On 25 October 2012, The National Audit Office (NAO) published a report identifying issues and risks which may arise as local bodies are given more control over funding and delivery of transport services. This follows recent proposals from the Department for Transport (DfT) to devolve funding for major schemes to new local transport bodies, as well as devolving bus funding and some responsibilities for rail services. As a result, the spending watchdog is calling on the DfT to clarify its approach as these changes are implemented, asking it to be clearer on who is responsible for local transport funding and how they will be held to account. (Source: NAO) Network Rail to make more data publicly available Network Rail has announced that it will be making more of its data available to the public with the release of current and future road works information on an interactive website provided by ELGIN, a company established to open up local road works data. The site, roadworks.org, will allow businesses and residents in England and Wales to search a map which will show them whether any planned Network Rail work will affect the roads in their area. Users will also be able to sign up for email alerts which will update them when new work is planned. (Source: Network Rail) Could Luton be Englands airport? Plans to turn Luton into a four-runway England airport were unveiled on 24 October 2012 as the latest possible solution to the crisis in aviation capacity. The schemes backers claim that, of the capitals six airports, only Luton has good enough UK-wide links to make it a nationally accessible hub. (Source: Evening Standard)

Energy and environment

Brownfield allowance gives new lease of life to North Sea oil On 24 October 2012, the government approved plans by energy firm Talisman to invest 1.6bn in extending the life of oil fields in the North Sea. The MonArb Area Redevelopment Project will create or sustain over 2,000 UK jobs and unleash millions of pounds of extra investment for the economy. It will be the first development to be implemented as a result of the brownfield tax allowance announced by the Treasury last month, which is designed to encourage investment in older fields and shields a proportion of the income created at these fields from certain taxes. (Source: DECC)

UK leads Europe in cutting CO2 levels The UK reduced greenhouse gas emissions by 6 per cent over the past year, more than any other European country, enabling it to surpass its commitment under the Kyoto protocol. Factors including an increase in renewable energy generation, milder weather and a sluggish economy have been attributed to the drop. France (5 per cent) and Germany (2 per cent) have also made good progress this year, while the EU commissioner for climate action, Connie Hedegaard, has warned that Spain and Italy are in danger of missing their targets under the 1997 treaty. The EU as a whole is forecast to meet its commitment under the Kyoto protocol. (Source: The Guardian) UK must invest in renewables to avoid energy crisis Andy Boroughs, a renewables expert who was instrumental in introducing low carbon heating technology to the UK nearly 20 years ago, has said that the UK is facing an energy crisis over steep rises in energy bills. This is following a report by Ofgem which warns of rolling blackouts by 2015 unless alternative sources of energy are found. Boroughs is now calling on the government to increase investment in renewable energy to supplement the stressed energy system. (Source: Bdaily) New Welsh scheme will turn buildings into power stations On October 24 2012, the Rt Hon Vince Cable MP, Secretary of State for Business, Innovation and Skills, and the Rt Hon Carwyn Jones AM, First Minister of Wales, unveiled a 20m scheme at Baglan Energy Park, near Port Talbot in Wales, to turn buildings into power stations. The scheme, which will create 300 jobs, is led by a partnership including the Universities of Bangor and Wrexham and Tata Steel and will integrate new technologies into roofs and walls to generate and store renewable energy. (Source: Wales Online) YouGov poll shows public backing for renewable energy An opinion poll commissioned by the Sunday Times, and published by YouGov on 22 October 2012, shows high levels of public support for renewable energy in the UK. 55 per cent of those polled said that there should be an increase in the number of UK wind farms, while 14 per cent said that they should be maintained at current levels. 72 per cent were in favour of solar energy, however, fossil fuels and nuclear technology were found to be far less popular. (Source: BWEA) New natural resources body for Wales The Rt Hon John Griffiths MP, Minister of State for the Environment, has announced that the new body that will replace the Environment Agency Wales, the Countryside Council for Wales and Forestry Commission Wales will be known as Natural Resources Wales. The appointment of ten non-executive directors for the board was also announced. The single body, which will be responsible for natural resources in Wales, is scheduled to start its work by 1 April 2013. (Source: Welsh Government)

Other news
CBI publishes geographical growth strategy On 25 October 2012, the Confederation of British Industry (CBI) published a growth strategy for each geographical part of Britain, highlighting the need for each area and city to have its own bespoke growth plan. The report, The UKs growth landscape Harnessing private sector potential across the country, was developed to support the CBIs belief that a successful rebalancing of the economy requires the private sector to grow across the whole country, not just London and the South-East. (Source: CBI)

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