A mix of views – including a good deal of scepticism – greeted the Chancellor’s Autumn Statement when we asked our partners and sponsors for their reactions.
Jeremy Hunt delivered his Statement on Wednesday, November 22 but left some of our team of property professionals hoping for more.
Mike Shearn, group investment & development director for Haslams Estate Agents, said: “The industry had been hoping from some early Christmas presents that would help support first time buyers, down-sizers and investors.
“Unfortunately, hopes were dashed and it feels like housing was a bit of an after-thought. There were some announcements like ‘£32 million towards unlocking 40,000 new homes’ that look exciting but, once unwrapped, they fall short of expectations.
“In this case, £32m equates to around just £100,000 for each local authority and so it’s unlikely to make any significant impact on the housing crisis. All eyes now on the Spring budget!”
Brian Dowling, partner of Boyes Turner, said: “There isn’t a lot of ‘new money’ for development in the Autumn Statement, or any reforms to property taxes, but given the impact that increasing borrowing would have on the economy, this is to be expected.
“There are some promising indications that the Government is looking strategically at aspects of the planning and infrastructure system. In particular, there is a series of proposed reforms to infrastructure investment and planning rules, specifically designed to bring pension fund investment into improving the electricity grid.
“An upgraded grid is critical to bringing forward net zero measures like on site renewable generation and a public network of EV charging stations.
“At a micro level, there are changes to PD rights, including a right to convert most houses into two flats, and an end to the blanket ban on siting heat pumps within one metre of a property boundary.
“Developers will want to know more about planning performance reforms for major applications. These promise guaranteed decision dates for major applications, in return for increased fees, which will be refunded if the dates are not met.
“Planning and utilities are known to be key factors in delaying new schemes so hopefully these outline measures get filled in and brought forward.”
WWA directors reviewed what impact the key planning announcements would have on day-to-day business in the industry.
WWA director of planning Ifti Maniar said: “First the announcement of an accelerated decision-making process for major business planning applications for an increased premium. Planning departments are under-resourced and therefore without ringfencing planning fees, we believe this will not have a significant impact. In our experience, extensions of time or increased refusals would likely be the result.
“It is often the case that statutory and other consultees, do not provide their input in a timely manner rendering planning departments unable to make a decision regardless of their own performance.
“There was also an investment to incentivise Local Development Orders. These would be welcome, but it appears this is for commercial projects rather than housing so only has the potential to assist particular sectors.
“The £32 million investment to tackle planning backlogs and develop new housing quarters in Cambridge, London and Leeds is welcome. The £110m investment to deliver high-quality nutrient mitigation schemes is also welcome as it could unlock applications for development which are in stasis presently.
“In many cases, new Permitted Development Rights to enable one house to be converted into two homes will lead to sub-standard accommodation as the floor areas of most houses cannot accommodate two homes in line with Technical Housing Standards – the nationally described space standards. It would be far better to reform the planning system to encourage the delivery of new, accessible homes through an efficient and properly resourced service, rather than relying upon shortcuts via permitted development which will likely result in poorer-quality housing.
“Overall, there were no radical changes proposed and it is likely to be ‘business as usual’ for the foreseeable future.”
Nick Burrows, chairman and partner of Blandy & Blandy, said: “An Autumn Statement delivered by a Chancellor with an eye on the next election. Cuts in National Insurance will provide some savings for most workers, but don’t provide any benefit to those with investment income.
“The rise in the state pension will be welcomed by the retired, and the rise in benefits was higher than it might have been. Whether the measures will stimulate the growth the economy badly needs is uncertain, and the headroom that the Chancellor has is dependent upon the increased tax generated by those who will fall into higher tax brackets because of frozen allowances.”
Katja Wigham, Blandy & Blandy partner, commercial property, said: “There isn’t much for businesses in the property sector or homeowners to welcome in the Autumn Statement and the rumoured cuts to Capital Gains Tax and Inheritance Tax did not materialise.
“However, the extension of VAT savings on energy saving materials will help homeowners and charities wishing to use these materials and the retail, hospitality and leisure industries will welcome the extension of business rates relief. Some of the full expensing capital allowances reliefs have also been made permanent which is a further benefit to companies.”
Philip Campbell, commercial director of MEPC Milton Park, said: “The simplified tax relief announced for R&D intensive SMEs, plus the Government’s acceptance of the Oxford University-led spinout review, will drive investment and support the UK’s ambition of becoming a science and tech superpower by 2030.
“Additionally, the commitment to deliver £520m for life sciences manufacturing will help to capitalise on the UK’s world-leading R&D capabilities across leading innovation clusters, like we have here at Milton Park in Oxfordshire.
“Together, we believe this will strengthen the demand for flexible laboratory and commercial space, which can be unlocked through quick, flexible planning arrangements such as the ten-day Local Development Order in place at Milton Park.”
Pete Canavan, partner of Carter Jonas (Oxford), said: “As with the King’s Speech a few weeks earlier, the Autumn Statement fell short of expectations, with little for the planning and development sector to get excited about.
“Any hope now rests with the revisions to the NPPF – which have been imminently expected for the best part of a year.
“That said, the Autumn Statement has fuelled speculation that a general election may be planned for early next year. And if that is the case, what likelihood is there that the Government will make controversial changes to its primary planning policy document?
“In reality, it may be that very little positive change has been achieved over the last five-year term, contrary to the radical planning reforms promised back in 2019.”
Andy Moffat, head of planning at Savills Cambridge, said: “The devil will be in the detail, but there were some key announcements in the Autumn Statement relating to planning which could have an effect here in the East.
“The £110m for nutrient mitigation schemes is interesting and – while we don’t know exactly where this money will be spent – it could be good news for Norfolk and will hopefully help to manage delays related to nutrient mitigation requirements ahead of the provisions in the Levelling Up and Regeneration Act, which put the responsibility for resolving nutrient issues on to the water companies by 2030.
“A further £32m of investment was also announced in the planning system to try and solve the backlog and develop new housing quarters in Cambridge, along with London and Leeds. It isn’t clear yet if this would be through LDOs, allocations or another means, but the need for new affordable housing in Cambridge is clear, so we await more news on that with interest.
“An extra £450m was also announced to the Local Authority Housing Fund to deliver 2,400 new homes. It also looks likely that from next year reforms will be introduced to allow local authorities to recover the full costs of major business planning applications in return for meeting guaranteed faster timelines.
“There would also be commitment to these applicants to have their application fees refunded if they did not receive a decision within the statutory determination period. Again, we would need to see the full details, but it appears to be a step in the right direction.”
Lawrence Turner, director of Boyer (part of Leaders Romans Group), said: “The Chancellor’s Autumn Statement has once again raised the issue of planning reform in the UK, acknowledging the system as a barrier to investment. However, this reaffirmation of intent to reform the planning system falls short in terms of substantial action.
“It is evident that over the last 13 years, the Government has proposed multiple reforms to the planning system, yet none has been implemented due to lack of support and backing. During this time, the position of Planning Minister has been occupied by 16 different ministers. This constant rotation is quite evidently one of the main obstacles preventing the achievement of significant reform.
“The proposed reforms in the Autumn Statement, such as the introduction of a premium planning service and funding to tackle backlogs in local planning authorities, lack sufficient substance to effectively address the issue at hand.
“What is truly needed are reforms that directly result in the building of more homes. This should involve significant funding to increase resources for local planning authorities, measures to ensure up-to-date Local Plans are in place, and legislative changes to deal with issues such as nutrient neutrality.
“Without these essential reforms, the Government’s aspirations for growth through improved infrastructure and commercial development will remain unattainable.
“In essence, the Government’s current proposals for planning reform are inadequate to address the long-standing issues within the system. The time for meaningful and effective planning reform is now, and it requires more than just lip service from policymakers.”
Image: Official portrait of the Chancellor of the Exchequer Jeremy Hunt, 2022.jpg | Official portrait of the Chancellor of the Exchequer Jeremy Hunt, 2022.
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