Policy & Politics Update

Property, Transport, Environment and Infrastructure

17th September 2012

Property, planning and regeneration

Don Foster MP to take on building regulations portfolio in new role On 11 September, the Department for Communities and Local Government (CLG) confirmed that the Rt Hon Don Foster MP will take the building regulations portfolio as part of his new post as Parliamentary UnderSecretary of State at CLG. Mr Foster replaced Andrew Stunnell MP as part of the Prime Ministers cabinet reshuffle. (Source: Building) Significant fall in planning consents for new homes Fewer than half of the 60,000 homes needed per quarter to meet housing requirements were approved in Q2 2012, according to data compiled by Glenigan and published in the Home Builders Federations New Housing Pipeline report on 10 September. Since the National Planning Policy Framework was implemented in March, only 24,872 homes have been approved. This is the lowest number of permissions granted since 2009 and a fall on the number approved the previous quarter (36,761) as well as the same period last year (25,171). (Source: HBF) Parliamentary report recommends procurement revolution The All Party Parliamentary Group for Excellence in the Built Environment has published a report which recommends that the procurement processes used to build the 2012 Olympic venues by the Olympic Delivery Authority should be applied across the industry. The report, entitled A better deal for public building published on 10 September, calls for a procurement revolution and sets out ways to deliver better value for money in the construction sector. (Source: CIC) Government review of PFI due this autumn At a Centre Forum event on 10 September, the Rt Hon Danny Alexander MP, Chief Secretary to the Treasury, announced that the Governments review of Private Finance Iniative (PFI) is due to be published this autumn. Mr Alexander added that discussions were taking place about the use of government guarantees to underwrite investment in construction of new infrastructure. (Source: Building) Commons Committee reports scandalous lack of progress with Regional Growth Fund projects The Commons Public Accounts Committee published a report on the regional growth fund on 11 September. Chair of the Committee, the Rt Hon Margaret Hodge MP, stated that it was scandalous that so few projects funded by the Regional Growth Fund had begun. In two years, 1.4 billion has been allocated with only 60 million being spent on front line projects. (Source: Commons Public Accounts Committee) Retailers find growth markets harder to succeed in Growth markets such as Brazil, India and China are harder for retailers to expand in than Germany, UK and Canada, according to EC Harris first annual Retail International Programme Expansion (RIPE) Index published on 10 September. Tough set up conditions, poor infrastructure, complex legal frameworks and lack of access to prime locations are some of the barriers stopping retailers entering growth markets successfully. (Source: EC Harris) Worlds leading cities supported by domestic wealth generation The residential markets of the worlds leading cities are fuelled by domestic wealth generation with international investment retreating to a few core, established, long-term markets, according to Savills Autumn

World Cities Review published on 10 September. Hong Kong had the highest half year price growth at 7.4 per cent, with London rising 2.8 per cent. Both were higher than the index average of 1.2 per cent. (Source: Savills) New rural contract to encourage rural economic growth A new rural contract was announced by the Rt Hon Owen Paterson MP, Secretary of State at the Department for Environment, Food and Rural Affairs (Defra) on 12 September. The Rural Statement gives Rural England a new power to hold the Government to account on growing the rural economy and supporting rural communities. (Source: Defra) 44 per cent of council chiefs think planning should remain in-house 44 per cent of council leaders and chief executives think that planning services should remain in-house, according to a report by Localis and Capita Symonds published on 13 September. The report, entitled Catalyst Councils: a new future for local public service delivery, also found more than a third of leaders and chief executives surveyed think that there are no local services that could not be delivered by a private or voluntary sector provider. (Source: Planning) Expert task force and 200m fund announced for rental house building sector At the RESI 2012 housing conference, Peter Schofield, the Director General of Neighbourhoods at CLG, announced plans to launch an expert task force to stimulate the private rental house building sector. The task force will help deliver a 200m fund to provide short to medium term financing for developers with viable rent projects. (Source: Construction News) London only area to report average house price increases Activity in the UK housing market remained consistent in the three months to August 2012, according to the Royal Institution of Chartered Surveyors UK Housing Market Survey published on 11 September. Chartered surveyors sold 7.5 per cent of homes on their books, a similar proportion to the rest of 2012 albeit being historically low. House prices edged lower in August, with only London reporting average price increases. (Source: RICS) Construction activity down 10 per cent Activity in the UK construction sector decreased by 10.1 per cent in the year to July, according to figures released by the Office of National Statistics (ONS) on 14 September. Between May and July, output was also down by 10 per cent compared to the same three months last year. However, the ONS stated that the effect of having two extra days holiday in June left output unusually depressed. In comparison, construction output increased by 2.2 per cent between June and July 2012. (Source: ONS) Construction workforce at lowest level since Q2 2011 The construction workforce in the UK fell to 1,996,000, its lowest level since Q2 2011, according to ONS figures published on 12 September. Figures for June 2012 were 35,000 lower than the workforce in March 2012, which stood at 2,031,000. (Source: ONS)

Transport
Sustainable transport scheme confirmed for Tyne and Wear On 11 September, the Rt Hon Norman Baker MP, the Parliamentary Under-Secretary of State for Transport at the Department for Transport (DfT), confirmed almost 5 million of funding for the Go Smarter to Work Tyne and Wear Sustainable Transport Package. The scheme includes measures to relieve congestion on the A1 Western Bypass and new infrastructure such as priority bus lanes, cycle and pedestrian routes and cycle parking at key transport interchanges. (Source: DfT) Proposals unveiled for London Britannia Airport in the Thames Estuary On 12 September, new proposals for a floating airport in the Thames Estuary were unveiled by architects Gensler. London Britannia Airport includes four floating runways tethered to the sea bed and could accommodate future expansion to six runways when required. The economic case for a new hub airport has been criticised as costs up to 60 billion would need to be recouped from charges which would deter operators. (Source: BBC)

MPs call for smart ticketing and for councils to have greater control on bus services The Transport Select Committee has called for bus service improvements to be prioritised in a report published on 13 September. The report, entitled Competition in the local bus market, states that rail passengers are treated more favourably than bus passengers despite more than three times as many people travelling by bus compared to rail. The report also called for smart ticketing (like Oyster cards) to be used and for local authorities to be given more control over local bus services allowing them to set standards, timetables and fares. (Source: Transport Select Committee)

Energy and environment

Ministerial portfolios announced at DECC On 13 September, the Department of Energy and Climate Change (DECC) confirmed that the ministerial responsibilities at the Department will remain the same following the reshuffle. The Rt Hon John Hayes MP, the new Minister of State for Energy, will have responsibilities including the Energy Bill and Electricity Market Reform. (Source: DECC) Met office launches weather forecast for wind farms The Met Office launched a new wind production forecast service on 12 September, which is designed to more accurately predict power outputs from wind farms. Wind Production Forecast Plus is intended for energy generators, traders, consultants and grid operators. By better predicting the weather and wind speed, operators will be better able to manage fluctuations in the electricity supply, reducing the need to generate or buy electricity from elsewhere and avoid potential penalties. (Source: Edie) First solar powered waste treatment plant On 14 September, AmeyCespa, the waste management company, announced plans to build the UKs first mechanical biological treatment (MBT) plant to be powered by solar power. The plant will be built in Cambridgeshire and will comprise 20,000 panels. This will produce up to five megawatts of electricity, providing enough power to run the MBT facility. Any excess energy will be fed into the national grid. (Source: Edie) EU energy efficiency directive approved On 11 September, the European Parliament approved the EU energy efficiency directive. This will enforce mandatory energy saving measures that could save billions of euros every year. The measures include renovating public buildings, energy saving schemes for utilities and energy audits for large firms. The directive could help to cut energy production by 20 per cent and reduce dependence on energy imports, saving the EU up to 50 billion per year. The directive replaces two existing pieces of legislation the Energy Savings Directive, and the Cogeneration Directive. Member States will have 18 months to transpose the directive into national law. (Source: Edie)

Other news
Vince Cable outlines vision for British industry On 11 September, the Secretary of State for Business, Innovation and Skills, the Rt Hon Vince Cable MP set out his vision for the future of British industry which includes establishing a business bank to help companies invest in capital and drive their expansion. He also stated that the government is committed to a long-term, strategic partnership with industry which will provide greater clarity on where efforts will be focused. (Source: BIS) 165 million boost to skills training 34 businesses, including Siemens, Sembcorp, BAE Systems and Nissan, have been announced as the successful bidders to design new vocational training programmes for young people. On 11 September, Vince Cable announced a range of first round projects as part of the Employer Ownership Pilot. The initiative will see 67 million invested by the Government and 98 million by the private sector in projects such as Manchester Airports school leavers academy and Arla Foods proposals to train employees both within the company and in its supply chain. (Source: BIS)

Bank of England governor job to be advertised The Chancellor of the Exchequer, the Rt Hon George Osborne MP, announced on 11 September that the position of governor of the Bank of England would be advertised for the first time. The closing date for applications to succeed Sir Mervyn King is 8 October with an announcement on the new governor expected at the end of 2012. (Source: BBC) 25-year plan needed for Olympic legacy A leading urban policy think tank has warned that the Government, Mayor of London, London Legacy Development Corporation and the Olympic Boroughs must develop a 25-year plan and make long-term funding commitments if London is to avoid the legacy failures of previous Olympic host cities. Centre for Cities has published a five-point plan, entitled A Marathon not a Sprint? which also identifies the need to develop a clear vision for the Olympic legacy, deliver a social legacy in East London and capitalise on successful ideas from the Games. (Source: Centre for Cities) John Kingman to return as infrastructure permanent secretary It was announced on 11 September that John Kingman will return to his role as second permanent secretary in the Treasury including responsibility for the economics function (including growth), financial services and infrastructure. Mr Kingman will take up his role in October following a period as co-head of the financial institutions group at Rothschild. (Source: HM Treasury)

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