Rachel Reeves' statement of intent as Chancellor of the Exchequer, what are the implications for companies like Summix?
As the dust settles on this week’s Rachel Reeves' statement of intent as Chancellor of the Exchequer, what are the implications for companies like Summix who are promoting a range of sites and projects through the planning system some of which like Worcestershire Parkway are now nationally prominent?
Elected on a manifesto centred on rapid reform and change, Labour has at its core an ambition to build 1.5 million new homes over this Parliament. This will require change to our dated, creaking and dare I say it disproportionately 'objector weighted' planning system.
At the heart of delivery are the details relating to the precise mechanisms and importantly opportunities for significant funding. The funding is desperately needed to pump prime large strategic sites such as those being promoted by Summix at Worcestershire Parkway and Harrington; to ensure comprehensive delivery of infrastructure; fund affordable housing where viability is a challenge; and to fund resources for Local Authorities many of whom lack sufficiently experienced staff. The presumption on my part is that this range of funding will be somewhat self-generating off the back of rapid growth in development and the build, build, build mantra.
For Summix, as a promotor to a range of development types across our portfolio, the new Government taking the positive step of deliberately positioning housing delivery front and centre of its agenda is a welcome change. Central to this is having the Housing Minister role appointed to a prominent and key Cabinet Ministerial position in the form of Deputy Prime Minister Angela Raynor MP (see below). This will hopefully give the role greater gravitas and stability and lessen the revolving door which has plagued the role historically whilst it wasn’t a key Cabinet role and was perceived as being a stepping-stone role for incumbents.
So, what was said yesterday that has got the industry excited? The following is a summary of the key announcements:
1. Consultation on revisions to NPPF later this month
2. End to "de facto" band on onshore wind and future consultation on reinstating it within the NSIP regime
3. Prioritise energy generation schemes
4. New Task Force to increase housing delivery starting with Liverpool Central Docks; Worcestershire Parkway (emphasis added); Northstowe; and Langley Sutton Coldfield
5. Recruit 300 new planners into LPAs
6. Ministers intervening in decision-making where there are benefits to regional and national economy
7. Deputy PM to write to LPAs calling for universal local plan coverage and regular review of Green Belt boundaries (prioritising brownfield and "grey belt")
8. Reform the planning system for major infrastructure
9. SoS for Transport and Energy Security & Net Zero to prioritise decisions on key infrastructure
10. Consultation on revised policy on critical infrastructure in "coming months" and new National Policy Statements "within the year"
Whilst it is early days and there are many promises, there is plenty to be positive about for companies like Summix. As the detail emerges, we can look forward to supporting the delivery of new homes, new affordable housing of all types and tenures, new settlements, and student housing across our portfolio.
In addressing the somewhat hitherto conveniently ignored housing crisis we along with others in our industry can contribute towards correcting the intergenerational unfairness that exists in our housing market that has simply been exaggerated by the lack of action, reform, and prioritisation on delivery for many years.
The main area that has been interpreted as positivity is simply the application of a sense of urgency and momentum to the planning process which is a key sea change from recent years where the system has become a protracted process that is expensive and painfully slow for strategic land promoters particularly.
There will be difficult decisions with the approach to get the growth delivered where it is really needed, but there is an acknowledgment from Labour that implementing this reform will require some decisions to come, but all the announcements in combination equate to a commitment not to succumb to the status quo by always saying no.
Peter Bateman - Planning Director Summix July 2024