Budget puts infrastructure, energy and housing at the heart of growth

Today’s Budget underlines the Government’s intention to use infrastructure investment, devolution and energy reform to drive economic growth and development across the UK.

Clean energy infrastructure is a clear priority, but with a stronger emphasis on affordability and energy security. New energy schemes will need to demonstrate both a credible route to grid connection and their ability to contribute to lower bills, alongside wider grid reform and greater use of fixed-price arrangements intended to provide greater certainty over energy costs.

There is also a significant regional growth agenda. New mayoral growth funds, together with incubator funding for areas without mayors, are intended to support infrastructure and regeneration projects, alongside wider devolution of powers and greater retention of local tax and business rate revenues for investment in local communities.

For the development sector, substantial infrastructure spending should create opportunities around regeneration, transport and strategic development, while changes to public procurement are intended to channel more public expenditure towards British businesses, supply chains and manufacturing jobs.

Claire Petricca Riding, Head of Planning at Irwin Mitchell, said:

“Housing remains central to the Government’s agenda. Alongside a commitment to boost housebuilding and revive social housing development on public land, the Government has indicated that there will be no major changes to building regulations during this Parliament and that biodiversity net gain requirements will be removed for brownfield development. Support for purchasers will include changes around first-time buyer ISAs and a new equity loan scheme expected next spring for purchasers struggling to raise a sufficient deposit.

 

“For the real estate and development sector, the overall direction is significant. The Government is increasingly bringing together planning, infrastructure, energy and regional investment as part of a single growth strategy. The key question will now be how quickly these announcements translate into projects on the ground, and whether increased infrastructure investment and reduced regulatory barriers are enough to unlock sites which have struggled with viability, grid capacity and other delivery constraints.”
 

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