Policy & Politics Update

Property, Transport, Environment and Infrastructure

9th July 2012

Property, planning and regeneration

Planning fees to increase The Minister of State for Decentralisation and Planning Policy, the Rt Hon Dr Greg Clark MP, announced on 3 July a one-off increase in planning fees of around 15 per cent. The minister stated that fees had not increased since 2008, and that the increase would allow local authorities to address a shortfall in fee income that was currently leading taxpayers to subsidise the planning process. (Source: DCLG) Local Plan completions rate increases Greg Clark MP announced on 3 July, that 37 Local Plans have been adopted by local authorities in the last 12 months, a significant increase over the six years up to 2010, when fewer than 60 were adopted. During his speech to Parliament, he also announced further funding would be given to organisations that currently support neighbourhood planning the Royal Town Planning Institute, the Princes Foundation for Building Community, and the Campaign for the Protection of Rural England. (Source: DCLG) Over 100 councils sign up to Right to Buy scheme The Minister of State for Housing and Local Government, the Rt Hon Grant Shapps MP, announced on 2 July that 120 local authorities have signed up to the revamped Right to Buy scheme. Under the scheme, tenants in council homes will have the opportunity to own their own homes through discounts of up to 75,000, with every council property sold under the scheme replaced by a new affordable home for rent. (Source: DCLG) Six English cities to gain extra powers The English cities of Newcastle, Birmingham, Bristol, Leeds, Nottingham and Sheffield are to receive extra powers and funding from the Government in return for promises to reduce youth unemployment and speed up regeneration and economic growth. The deal, unveiled by the Department for Communities and Local Government (DCLG) on 5 July, will devolve more power to the six cities in addition to the deals already in place with Liverpool and Manchester. (Source: DCLG) Construction industry urged to work together During the launch of the Governments One Year On progress report on 3 July, the Minister for the Cabinet Office, Paymaster General, the Rt Hon Francis Maude MP, called on the construction industry to collaborate more closely with one another to achieve savings of 15 to 20 per cent on public building projects. The minister also challenged the sector, when working with the government, not to argue amongst themselves. (Source: Cabinet Office) New co-chair of the Green Construction Board announced On 2 July, it was announced that the President and CEO of Skanska UK, Mike Putnam, will join the Minister of State for Business and Enterprise, Mark Prisk MP, as co-chair of the Green Construction Board. (Source: BIS) Slight rise in house prices The Halifax House Price Index June 2012, published on 5 July, has found that house prices in June rose by one per cent compared to May. The Index valued the average price of a UK property at 162,417, which is 0.5 per cent lower than the same time last year. (Source: Lloyds Banking Group)

Annual house completions could fall below 100,000 The third annual Housing the Nation report, released on 6 July, has found that annual housing completions in England could fall below 100,000 for the first time since 2009. The report, put together by a group of property experts, revealed that 110,000 houses were built in 2011 with completions in Q1 of 2012 down 18 per cent in comparison to Q1 2011. (Source: BNP Paribas) UK construction sector activity contracts The MARKIT/CIPS purchasing managers index (PMI) has found that activity in the construction sector fell to 48.2 in June from 54.4 in May. The fall in activity, announced on 3 July, represents the sharpest decline in the sector for two and a half years and is cited as one of the main reasons why the UK fell back into recession at the start of 2012. (Source: MARKIT/CIPS) Retail landlords offering incentives in bid to rent properties The Q2 RICS UK Commercial Market Survey, released on 4 July, has found that more retail landlords are offering inducement packages in a bid to let their premises. With occupier demand having fallen over the past twelve months, landlords are resorting to offering rent-free periods or financial incentives on retail premises, with the survey reporting a 24 per cent rise in Q2. (Source: RICS)

Transport
Trolleybuses to return to Leeds The Secretary of State for Transport, the Rt Hon Justine Greening MP, announced plans on 5 July for a new 250 million public transport system in Leeds. The New Generation Transport scheme, delivering the UKs first modern electric trolleybus system, will help generate 4,000 new jobs and boost the West Yorkshire economy. (Source: DfT) Over-crowding on London trains at worst level for two decades Official figures, released by the Department for Transport (DfT) on 5 July, have found that over-crowding on rush hour trains leaving London is at its worst level for more than 20 years. The figures also claim that one in four trains arriving in London in the morning rush hour contain more passengers than official capacity allows. (Source: DfT) East of England rail vision outlined The regional rail manifesto, entitled Once in a Generation, has outlined plans to improve the modernity and comfort of trains, increase the punctuality rate to 93 per cent and to improve travel times between Norwich and London. The manifesto, drawn up by local politicians, business leaders and passenger groups, was launched on 3 July and sets out the vision for rail travel in the east of England over the next 20 years. (Source: BBC)

Energy and environment

Renewable generators asked for evidence on market access barriers The Government has asked independent renewable generators to provide evidence of barriers they might be experiencing to market access. The Department of Energy and Climate Change (DECC) issued the call on 5 July in order that it might assess and address the barriers that are leading to a decline in the terms generators are being offered for Power Purchase Agreements. (Source: DECC) CBI urge Government to support the green economy The Confederation of British Industry (CBI), published a report on 5 July, entitled The colour of growth: maximising the potential of green business, which calls on the Government to increase support levels for the green economy. Research laid out in the report has found that a change in policies could add 20bn to annual GDP by 2015. (Source: CBI) Rapid growth predicted in renewable power generation A report published by the International Energy Agency (IEA), entitled Medium-Term Renewable Energy Market Report 2012, has predicted that renewable power generation is expected to continue its rapid growth over

the next five years. The study, published on 5 July, stated that global power generation from hydropower, solar, wind and other renewables is projected to increase by more than 40 per cent to 6,400 terawatt hours. (Source: IEA)

Other news
New local audit regime announced The Secretary of State for Communities and Local Government, the Rt Hon Eric Pickles MP, announced, on 6 July, a new local audit regime with the aim of delivering value for money, greater responsibility for local bodies and tough audit standards. The draft legislation aims to ensure councils can deliver high quality services while stripping away bureaucracy. (Source: DCLG)

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