Today’s Budget is expected to be more safe sailing than rocking the boat.
Just weeks before the government is due to trigger Article 50, chancellor Philip Hammond will be trying to avoid adding to the existing economic uncertainty.
Not long since the release of the housing white paper and industrial strategy green paper, it is expected the government will wait to see the results of those consultations before introducing any dramatic new measures.
Ministers appear to be in “listening mode”, and want sectors to make their cases to government for a favourable post-Brexit environment.
Business rates relief will be the the big one to watch for the property sector, with rates relief promised for those hardest hit. But will it go far enough?
Here are EG’s five ones to watch from today’s announcement
■ Business rates
The chancellor has already pledged more help for firms facing the steepest business rates rises after April’s revaluation. However, it is not clear if any relief will be funded through central government or through an evening out of the changes to business rates across the country, which are currently set to hit London hardest. Business groups including the British Property Federation and MPs have urged the chancellor to ease the pressure of business rates on small firms.
GVA senior director in the business rates team David Jones said the chancellor needs to find £1.75bn in the budget to help alleviate business concerns from the 2017 revaluation. GVA has also called on the chancellor to reverse under investment in the Valuation Office, to “put faith back in the system” and “speed up the appeal process”.
■ Construction
The chancellor is expected to invest £500m a year into new technical training for students aged 16-19 in sectors including construction and engineering. It is understood “T-levels” would be rolled out from 2019. Mark Farmer, chief executive of Cast and author the government-commissioned “Farmer Review” on construction skills, said a T level “must feature learning in both traditional site based techniques and emerging digital led pre-manufactured construction technologies.”
He added: “The T level must also offer clear links to ongoing pathways for further work based training and specialisation aligned to industry’s future requirements. Any course restructuring must ultimately be designed in conjunction with industry partners.”
■ Technology
Hammond is expected to announce a £550m fund to back emerging technology sectors such as artificial intelligence and a strategy for 5G mobile coverage across the UK. The money, which will come from the National Productivity Investment Fund unveiled in the autumn statement, will help innovative UK companies grow. More investment is also expected to be announced for science and innovation.
■ Stamp duty
Some in the property industry are calling for a reversal of the stamp duty land tax surcharge first announced in 2014. However, there are no signs the Treasury is planning to reform the tax again in the short term. Rory O’Neill, head of residential at Carter Jonas, said: “A reduction in stamp duty costs is the final catalyst that the market needs to boost transactions and we wholeheartedly call for this in the Spring Budget. While George Osborne attacked the residential market two-and-a-half years ago, we are optimistic that, with his experience as a developer, Philip Hammond will work to create a more favourable environment in which housing can flourish.”
■ Infrastructure
Infrastructure investment announcements have become a common theme in recent budgets. With the Office for Budget Responsibility’s growth forecast looking more positive for 2017 , it is thought the chancellor might have a bit more “wiggle room” than was forecast in the Autumn Statement 2016 to allocate money to infrastructure. In a statement earlier this month, Schroders called on the chancellor to take advantage of the close to zero interest rates to invest in “badly needed public infrastructure”, particularly in projects that help boost long-term productivity.
■ Click here for the latest announcements, news and analysis from the 2017 Spring Budget
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