The Chancellor has recently set out his vision for economic growth, promising “a new era for Britain”. This is an all-encompassing announcement with a package of over 30 measures promising energy bills support, tax cuts and, you guessed it, cutting regulation.
It’s a phrase we’ve heard time and time again. Some may welcome this news, others will approach with serious caution. It’s safe to say though, the impact may be far reaching for the development industry.
Here are our key takeaways from this announcement:
Investment Zones
The Government is in discussions with 38 local and mayoral authorities in England, including Norfolk and Suffolk County Councils, to set up new ‘Investment Zones’, or growth hubs, in specific sites within their authority areas.
These areas would receive tax cuts for businesses and liberalised planning rules, including reforms to environmental regulation and streamlined local and national planning policies. It seems the idea of zonal planning has returned, at least for these specific Investment Zone areas.
Negotiations between Local Planning Authorities (LPA) and developers over affordable housing contributions will be scrapped and replaced with a set percentage of affordable homes. Whether this means Section 106 Agreements will also not be needed in these areas is another question.
If followed through (anyone remember the Planning White Paper??), these measures will lead to a shift in the planning system within these Investment Zone areas.
Major Infrastructure
Recognising the time it has taken historically for major infrastructure projects to get the green light, a package of measures is promised, including new legislation, to accelerate the delivery of 100 major infrastructure projects across the Country, prioritising transport, energy and digital infrastructure. The acceleration will apparently come from “reducing the burden” of environmental assessments and reforming habitats and species regulations.
For non-major infrastructure and for areas outside of these potential Investment Zones, this announcement appears to fall silent. For those of you with concerns around Nutrient Neutrality, there is certainly a hint at Habitats Regulations reform, but how far reaching this will be remains to be seen.
As with all of these things, the devil will very much be in the detail and we’ll be watching this closely over the coming weeks and months.
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