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This article was first published on LexisLibrary on 19 March 2014. Click here for a free 24h trial of LexisLibrary.

The Budget 2014 for local government lawyers

Abstract Local Government analysis: With the Chancellor's speech still ringing in our ears, we bring together the most important features of the Budget 2014 for local government lawyers alongside expert analysis and industry comment. Analysis What was relevant in the Budget for local government lawyers? Original news Press Release: Chancellor announces major boost to housebuilding, LNB News 17/03/2014 133 The Chancellor has announced a major new housing development as well as plans to extend the government's Help to Buy equity loan scheme. The 200m boost to housebuilding will provide up to 15,000 new homes in Ebbsfleet in Kent. In addition, the Help to Buy scheme will be extended to 2020, with a further 6bn being invested to assist 120,000 households in purchasing a new home. What are the headlines for this year's Budget for local government lawyers and why? Stephen Matthew partner at Nabarro, specialising in infrastructure projects including public private partnerships and outsourcing: Major new building programmes like the 'garden city' planned in Ebbsfleet in addition to plans for 200,000 new homes will have an impact in the South East where pressure for new housing stock is most acute. The creation of a 500m builders finance fund to support smaller housing developers is clearly designed to support this programme. If policy is converted into bricks and mortar, planning is going to remain an issue for local authorities. Increased spending allocated to potholes and flood defences will no doubt be welcomed for political and practical reasons. Otherwise the watchword for the budget remains 'restraint' in relation to public sector pay and investment. Are there any surprises? Mike O'Connor, head of infrastructure, projects and energy at Addleshaw Goddard: It's a shame there were no surprises, as any surprises would probably have meant more money for the sector. The ongoing theme and therefore disappointment for those in local government is continuing pain. The planned revaluation of business rates was deferred at the end of last year and this would have helped the Regions to the detriment of London. It means continuing to think of ways to do things differently. Some councils will think harder about becoming commissioning authorities and not employing staff, others will be thinking how best to collaborate across local government boundaries or with other public sector provider such as the NHS. Many will be thinking that they can no longer be an employer of so many people. Stephen Matthew: There are no big surprises in this year's Budget for local government lawyers.

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What actions should property lawyers be taking? Mike O'Connor:For lawyers, I think they should be exploring carefully models of collaboration and alliancing, looking at procurement regulations as to what can be done swiftly and cost effectively rather than with protracted competitions. What has been the reaction from the local government sector? Sir Merrick Cockell, chairman of the Local Government Association: 'Bringing down spending on benefits through a welfare cap will only be truly effective when government also frees councils to build more social housing. While the Budget has not brought further cuts for local government, it has not changed the fact that the next two years will be the toughest yet for people who use and rely upon the services which councils provide. The black hole in funding for local bus services, a 10.5bn backlog in road repairs and continuing uncertainty over funding for much-needed reforms of the adult social care system have yet to be properly addressed.' 'By next year, council budgets will have been cut by 40% from where they were at the start of this parliament. As the economy improves, people will increasingly start to question why councils are having to reduce and withdraw from providing the services that underpin their daily lives. If we are to avoid an upturn in the economy coinciding with a decline in public services, we need nothing less than a fundamental reform of the way the public sector works and an honest reappraisal of how public services are provided and paid for in post-austerity Britain.' Want to know more? A full overview of the Budget 2014 can be found here: Budget 2014: Tax Information and Impact Notes and related documents, LNB News 20/03/2014 2. The views expressed by our Legal Analysis interviewees are not necessarily those of the proprietor.