The Labour government has rightly made both housing and economic growth a top priority. In the spotlight since day one of the Government, there is a growing recognition that one drives the other.
In recent years, a combination of factors has created a perfect storm of rising interest rates and higher inflation pushing up costs. The entire development sector has felt the impacts of this with increasing pressure on large scale development. The outlook is changing, accelerated by the recent Investment Summit hosted by the government which saw £63bn of global funding committed, stimulating jobs and economic growth.
The importance of government support for largescale development projects, whether through public sector investment, or through regulatory and fiscal initiatives which signal that Britain is open for business, cannot be under-estimated. Investors and developers take significant speculative risks, the mood music from the government of the day is critical to ensure that the UK is seen as an attractive place to take such risks.
The proposed reforms to the NPPF seeking to accelerate planning processes are welcomed. However, planning is only one tool to facilitate homes and economic growth. The Budget can, and must, pave the way for a new era of delivery.
No one is under any illusion of the scale of the challenge facing the government in this Budget – and no one is expecting any giveaways. However, this Budget is as much about laying out the future course of the economy to a watching domestic and international business and investor audience, as it is about the finances of the here and now. Investors, and by default, large scale housing and infrastructure projects want reassurance that their investment will be supported by a receptive fiscal, policy and regulatory environment.
This is as true in London as it is across the rest of the UK. We’re pleased to see the Chancellor, Rachel Reeves, announce a change in the rules on borrowing to free up billions in investment to kickstart the economy. This will give a major confidence boost by underpinning public and private sector investments with government support.
The Budget can also be a step on the road to delivering the 1.5 million homes the Government has targeted. The anticipated announcement of the injection of funding into the Affordable Homes Programme (AHP) will unlock housing delivery, not just in London, but across the country. The £500m in extra funding which is rumoured to be funnelled into the AHP will help restart stalled schemes across the Capital and enable schemes such as Earls Court to progress with confidence.
There is more that could be done. A challenging economic landscape remains a challenge across the development sector and at the very least clarity on funding is key to giving developers the confidence to invest in their schemes to get them off the ground. A Budget which looks at a return on public sector investment over a longer period of time than the current short financial cycle could unlock infrastructure projects, major housing projects and deliver economic growth.
Our proposed development at Earls Court can deliver exactly what the government wants and needs. We want to see a Budget which, in word and spirit, fosters closer collaboration between the public and private sector, in turn ensuring delivery of this and other schemes across London will be faster, more efficient and bring better outcomes. We are encouraged by the work of the Government to date and hope to see a Budget which puts a focus on unlocking delivery and getting Britain building.