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BPF calls for ‘clear plan for growth’ in Autumn Budget

News

Akanksha Soni

10 September 2024

The British Property Federation has called on the chancellor Rachel Reeves to “set out a clear plan for growth” in the Autumn Budget.

In a pre-Budget statement, the BPF said that the government needs to set out a “clear long-term agenda for growth” to give investors’ confidence.

It proposed tax and funding incentives, such as increasing the subsidy levels of affordable housing by £9bn – £14bn per year, which it said would unlock the private capital needed to deliver 145,000 new homes per year.

It also suggested the reinstatement of Stamp Duty Multiple Dwellings Relief to support valuations and development viability to aid the build-to-rent sector.

In terms of revitalising town centres, the BPF supported the CBI’s call for the government to reform the business rates system, removing the annual inflationary uplift so it is fixed like all other taxes and introducing annual revaluations, so the level of tax adjusts to changes in trading conditions.

It also said the government should facilitate more private investment into town centres and high streets through the establishment of Town Centre Investment Zones, which would offer planning and tax incentives and create a new model for public-private partnerships.

The BPF is also calling for the chancellor go further with the reform of national planning policies, with a long-term plan for boosting funding and skills for planning departments, beyond the 300 additional planners already announced.

Melanie Leech, British Property Federation chief executive, said: “We recognise the challenging fiscal environment for the government but there are billions of pounds of global capital potentially available to UK real estate and the chancellor should set out a clear vision and positive agenda for growth to unlock the long-term private capital needed to build more homes, employment spaces, decarbonise our older building stock, and create the platform for growth.

“The new government has shown real urgency in moving forward reform of the planning system. Alongside this, we urge the chancellor to consider a number of tax and funding incentives that remove some of the current challenges and barriers for investors and send a clear message that the UK is open and planning for growth.”

Reeves (pictured) is due to deliver the Autumn Budget on 30 October.

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British Property Federation, Rachel Reeves

The British Property Federation has called on the chancellor Rachel Reeves to “set out a clear plan for growth” in the Autumn Budget. In a pre-Budget statement, the BPF said that the government needs to set out a “clear long-term agenda for growth” to give investors’ confidence. It proposed tax and funding incentives, such as increasing the subsidy levels of affordable housing by £9bn – £14bn per year, which it said would unlock the private capital needed to deliver 145,000 new homes per year. It also suggested the reinstatement of Stamp Duty Multiple Dwellings Relief to support valuations and development viability to aid the build-to-rent sector. In terms of revitalising town centres, the BPF supported the CBI’s call for the government to reform the business rates system, removing the annual inflationary uplift so it is fixed like all other taxes and introducing annual revaluations, so the level of tax adjusts to changes in trading conditions. It also said the government should facilitate more private investment into town centres and high streets through the establishment of Town Centre Investment Zones, which would offer planning and tax incentives and create a new model for public-private partnerships. The BPF is also calling for the chancellor go further with the reform of national planning policies, with a long-term plan for boosting funding and skills for planning departments, beyond the 300 additional planners already announced. Melanie Leech, British Property Federation chief executive, said: “We recognise the challenging fiscal environment for the government but there are billions of pounds of global capital potentially available to UK real estate and the chancellor should set out a clear vision and positive agenda for growth to unlock the long-term private capital needed to build more homes, employment spaces, decarbonise our older building stock, and create the platform for growth. “The new government has shown real urgency in moving forward reform of the planning system. Alongside this, we urge the chancellor to consider a number of tax and funding incentives that remove some of the current challenges and barriers for investors and send a clear message that the UK is open and planning for growth.” Reeves (pictured) is due to deliver the Autumn Budget on 30 October. Photo © Mark Thomas/Shutterstock