Savills News

Spending Review 2020 : Investment in place-making, infrastructure and house building

The Chancellor Rishi Sunak has set out the UK Government’s plans for spending on health, education, transport and public services over the next year. Among announcements on funding allocated for Covid testing and help for people to get back to work there were funding allocations for planning reform, infrastructure projects and housebuilding which recognise the importance of planning in accelerating out of the Covid-19 pandemic. 

A new, holistic and place-based approach to place-making is proposed, with reform of the planning system still a priority and £12 million allocated to take this forward.

£4 billion has been allocated to the Levelling Up fund. This will enable local areas to bid for directly for projects such as roads, rail, High Streets and libraries. The fund will be managed directly by the MHCLG, Treasury and Department for Transport and projects must be delivered in this Parliament, have local support, and the support of their MP.

A £7.1 billion national home building fund, on top of a £12.2 billion affordable homes programme, was also announced, using a ‘simplified planning system’ to ‘ensure beautiful homes are built where they are needed most.’ An additional £100 million in 2021-22 has been added to the Brownfield Fund, aimed at regenerating brownfield sites to deliver housing.

To finance local infrastructure projects a new UK Infrastructure bank will be established in the north of England to work in the private sector to finance investment projects, starting this Spring. Investment in green industries to support growth clusters, including investment in off-shore wind and port infrastructure and investment through the Transforming Cities Fund to deliver investment in intra-city transport was also announced. Support for the Towns Fund continues, with the aim of delivering growth and improving standards in 167 towns across England. £4 million funding for the Oxford-Cambridge Arc will also be brought forward.

The National Infrastructure Strategy announced in the Spending Review and published yesterday adds some additional detail to proposals for infrastructure spending. This ncludes permitted development rights to allow the expansion of schools, further education, hospitals and prisons and where permitted development rights could not be used, a 10-week determination period for planning applications for these projects.

A new, streamlined system for Environmental Impact Assessments is also proposed and a strategic habitat mitigation and compensation scheme, like the Solent nitrate trading platform, is proposed to unlock development.

A Net Zero Review and National Infrastructure and Construction Pipeline report are expected within the next six months, and the long-anticipated English Devolution and Local Recovery White Paper will now be published within the next year.

The planning system will play a key role in the post-pandemic recovery and enabling the delivery of the building beautiful agenda. Investment in housebuilding, planning and infrastructure requires a place-based approach to ensure sustainable delivery which shouldn’t be overlooked in the funding of these projects.

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