Labour has launched its election manifesto: “For the many, not the few.” The pledges, which include building 100,000 affordable homes a year and investing £250bn in infrastructure over 10 years, would cost £48.6bn – to be funded from extra tax revenue and more borrowing.
Income tax would increase to 45p for people earning over £80,000, and 50p for those on more than £123,000.
Fundraising measures also included corporation tax rises, a crackdown on tax avoidance and an “excessive pay levy” on companies with staff on salaries above £330,000. Lewis Johnston, RICS parliamentary affairs manager, said the test will be whether the manifesto pledges “can be funded”.
He added: “As polling day draws near, we want all parties to focus on the housing, infrastructure and construction challenges we face – whilst Brexit will no doubt be top of the next government’s in-tray, it must not lose sight of the built environment.”
Ten key policy takeaways which would affect the property industry
£250bn National Transformation Fund: Labour would “take advantage of near-record low interest rates” to invest £250bn over 10 years in infrastructure – defined as transport, energy systems, communications, scientific research and housing. Using the fund, it would build new high-speed railways, extending HS2 into Scotland. Labour would build a “Crossrail for the North” and a new Brighton mainline for the South East. It would deliver universal superfast broadband availability by 2022.
Industrial strategy: Labour has pledged to create a “joined-up industrial and skills strategy” to support a “vibrant construction sector” with a skilled workforce and rights at work.
Housing target: Labour has stuck to the government’s commitment to build more than a million new homes. By the end of the next parliament it said it will be building at least 100,000 council and housing association homes a year for “genuinely affordable rent or sale”. The party said it would remove government restrictions that stop councils building homes and begin “the biggest council building programme for at least 30 years”.
Department for Housing: Labour would establish a new Department for Housing to focus on tackling the housing crisis and to ensure housing is “about homes for the many, not investment opportunities for the few”. The ministry would be tasked with improving the number, standards and affordability of homes.
HCA reform: Labour has pledged to overhaul the Homes and Communities Agency as a housing delivery body, and give councils new powers to build the homes local communities need.
Green Belt: Labour would prioritise brownfield sites and protect the green belt. It will start work on a new generation of new towns to build the homes we need and avoid urban sprawl.
Home ownership: Labour has promised to back first-time buyers. It claims the number of affordable homes to buy has plummeted by two-thirds under the Conservatives, so would build “thousands more low-cost homes” reserved for first-time buyers. Help to Buy funding would be guaranteed until 2027. Labour would also give local people buying their first home “first dibs” on new homes built in their area.
PRS: Labour has pledged to raise standards and encourage more secure tenancies in the private rented sector. The party would give leaseholders “security from rip-off ground rents” and end the “routine use of leasehold houses in new developments”. It has also proposed an inflationary cap on rent rises and three-year tenancies. In London, it would look at giving the mayor the power to give renters in London additional security and would legislate to ban letting agency fees for tenants.
Homelessness: Labour has pledged a national strategy to tackle the problem of homelessness, starting by making available 4,000 additional homes reserved for people with a history of sleeping rough.
Business rates reform: Labour would introduce a package of reforms to business rates – including switching from RPI to CPI indexation, exempting new investment in plant and machinery from valuations, and ensuring that businesses have access to a proper appeals process – while reviewing the entire business rates system in the longer run. It would also review extending the £1,000 pub relief business rates scheme to small music venues.
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