1. The first 20 Housing Zones outside London were announced, with the potential to deliver 34,000 homes. Together with eight existing Housing Zones, there should be capacity for 45,000 new homes
Andrew Carpenter, chief executive of the Structural Timber Association, said: “Any policies from the government which overcome the obstacles to both commercial and housing construction are always welcome. We fully support the identification of 20 brownfield site housing zones for investment in 45,000 houses, which is definitely needed to address the housing shortage. I urge the government to ensure these houses are built using modern methods of construction, such as timber, as the build would be efficient and the houses sustainable – important considerations in today’s climate.”
2. There will be an increase of 57p to the minimum hourly apprentice rate, taking it from £2.73 to £3.30
Mark Beatson, chief economist for the CIPD, the professional body for HR managers, said: “There’s been positive news this week for young people, with the increase in the National Minimum Wage above the recommendations of the Low Pay Commission for apprenticeships. Better-quality apprenticeships are what we need to get young people working, learning and earning, and there are signs we’re moving in the right direction on this.”
3. The government plans to abolish employer’s NI contributions for any worker under 21
Adrian Ringrose, Interserve’s chief executive, said: “The abolition of employer’s National Insurance contributions for employees under 21 years of age, and from next year, the abolition of National Insurance contributions for apprentices, is a step in the right direction. We welcome this news, and hope that it will result in the creation of more apprenticeship opportunities across the UK.
“With a workforce of over 50,000 spread all over the UK, we think it is right that the chancellor has emphasised creating jobs and growth throughout the country, and not just in London and the south east. Over the past year, the north actually grew faster than the south.”
4. A new Help to Buy ISA will include a government contribution of up to £3,000 for first-time buyers saving up the deposit for their first home
Robert Walker, real estate director at PwC, said: “The chancellor’s announcements of new Help to Buy ISAs and housing investment show he wasn’t joking about “fixing the roof” as the sun starts to shine. It will get more people on the housing ladder – where else are you going to get a 25% return on savings? This will open the housing door to many who previously couldn’t even get past the front gate, especially in regions outside London where house prices are lower on average.”
5. The government announced it will enter into negotiations on a Contract for Difference for the Swansea Bay Tidal Lagoon
Jon White, UK managing director at the global construction and programme management consultancy Turner & Townsend, commented: “Plans for a tidal lagoon in Swansea Bay show the government is committed to investing in cleaner energy with a steady move away from fossil fuels. If Swansea is successful, then with potentially more tidal projects coming on stream in the future, 10% of the UK’s electricity needs could be met.”
6. Devolution of skills and planning powers to the mayor of London and new City Deals for other parts of the UK, including pilot schemes for Manchester, Cheshire East, Cambridgeshire and Peterborough to retain 100% of additional business rate growth
Richard Threlfall, head of infrastructure, building and construction at KPMG, said: “The announcement of pilot schemes for Manchester, Cheshire East, Cambridgeshire and Peterborough to retain 100% of additional business rate growth above forecasts is a significant step towards putting more buying power in the hands of the UK’s city regions. Local taxation in the UK currently raises less than 2% of GDP compared to an OECD average of nearly 10%, severely restricting the ability of our cities to invest in their futures.
“It is good news that the government appears finally to have heeded the calls for meaningful fiscal devolution, freeing our regions to thrive.”
7. There was confirmation of projects including £7bn of roads and rail funding for the south west, the Brent Cross Regeneration scheme, and the Croxley rail link
Jon White, UK managing director at the global construction and programme management consultancy Turner & Townsend, commented: “This budget was never going to set pulses racing, however, we can take some comfort from plans to invest in regeneration and transport projects in London. But it was not just about the world’s global capital, there was also a £7bn cash injection for airfields, rail and better roads in the south west and 20 new housing zones across the UK.”
8. £140m of funding announced in the Autumn Statement for the repair and restoration of flood defences will enable 165 flood schemes to be delivered earlier than originally planned
British Property Federation chief executive Melanie Leech said: “While welcome, this extra money will be little consolation to the millions of business and homeowners who face being excluded from the government’s affordable flood insurance scheme, Flood Re.
“Flooding does not discriminate, so it is simply unfair to leave businesses, leaseholders and families living in the private rented sector to sink or swim on the open market. In particular, people who own their own flats will wonder why they should be denied access to affordable buildings insurance under the new scheme, while those who own their own house will not.”
9. The government is to shortly publish the Northern Transport Strategy on the strategic options for the North of England, including HS3
(ICE) director general, Nick Baveystock, said: “While these plans would need to survive a General Election, we welcome the commitment to improving Trans-Pennine road and rail links, enabling northern cities to achieve more through increased connectivity and capacity.
“It is also right that HS2 plans accommodate these links – ICE has continually urged government to ensure the locations and designs for HS2 stations are ‘future proofed’ for potential expansion such as this. We look forward to seeing further detail.”
10. Funding for the UK Export Finance programme will be doubled to £3bn
John Hicks, the UK head of government & public at Aecom, said: “We urge the government to encourage UK businesses to lead on delivering UK infrastructure projects, equipping them to take advantage of the huge export potential around the world. Ring-fencing delivery plans to speed skills development and mapping required skills against the planned pipeline of projects would enable UK business to better compete on the global stage. Otherwise British firms may lose out to international consortia and be reduced to taking tier-two roles.”
