{"id":145069,"date":"2024-10-30T08:00:50","date_gmt":"2024-10-30T08:00:50","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=145069"},"modified":"2024-10-30T09:39:15","modified_gmt":"2024-10-30T09:39:15","slug":"what-to-expect-in-the-october-budget","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/what-to-expect-in-the-october-budget\/145069\/","title":{"rendered":"What to expect in the October Budget for UK construction"},"content":{"rendered":"

Wednesday’s October Budget is fast approaching, with chancellor of exchequer Rachel Reeves set to announce large changes<\/h2>\n

Reeves has confirmed some changes ahead of the October Budget’s full announcement, ranging from school building to debt rule changes.<\/p>\n

Some in the construction industry are apprehensive, but many have a more positive outlook<\/a> as they look forward to a more concrete plan moving forward.<\/p>\n

Extra funding for schools and homes<\/h3>\n

Reeves has confirmed that the Autumn Budget will see an allocation of funds for both affordable housing, and the 10-year rebuilding programme originally announced in 2021 for schools.<\/p>\n

Schools will receive an extra \u00a3550m in funding to both build new schools and renovate existing ones, especially those plagued by RAAC causing them to fall apart.<\/p>\n

The original programme promised 50 new schools per year, but so far with the pandemic and economy affecting the construction industry, just 23 schools have been built to completion. The plan currently covers 518 projects.<\/p>\n

A further \u00a3500m will be allocated to the Affordable Homes Programme<\/a>, helping to fund the construction of 5,000 new affordable homes, and as a headstart on the housing strategy due to be announced in Spring.<\/p>\n

\u00a3128m will also be put towards new housing projects, encompassing 28,000 new builds blocked by river pollution (cleaning the rivers in the process), 3,000 energy-efficient homes, and 2,000 new homes in north Liverpool<\/p>\n

Brownfield sites<\/h3>\n

Confirmed funding of \u00a368m has been allocated towards unlocking brownfield sites<\/a> across the country.<\/p>\n

The money is for the more complicated preparatory works that many brownfield sites require, and will be spread across 54 different local authorities. The pledge was stated to be a further commitment to the delivery of 1.5m homes by the end of this Government’s term.<\/p>\n

Debt rules<\/h3>\n

The treasury has heavily hinted towards a change to their own debt rules<\/a> in order to free up funds for infrastructure projects.<\/p>\n

The change will involve introducing independent checks for major building works, and loosening the rule that debt must be lower after five years of borrowing.<\/p>\n

This will allow for more efficient borrowing for investment in infrastructure, including rail, road, and building sectors.<\/p>\n

A significant step in the plan to get Britain building again<\/h3>\n

Rachel Reeves said: “We need to fix the housing crisis in this country. It\u2019s created a generation locked out of the property market, torn apart communities and put the brakes on economic growth.<\/p>\n

“We are rebuilding Britain by ramping up housebuilding and delivering the 1.5 million new homes we so badly need.”<\/p>\n

Deputy prime minister Angela Rayner said: “We have inherited a housing system which is broken, with not enough homes being built and even fewer that families can afford.<\/p>\n

“This is a further significant step in our plan to get Britain building again, backing the sector, so they can help us deliver a social and affordable housing boom, supporting millions of people up and down the country into a safe, affordable and decent home they can be proud of.”<\/p>\n

The construction industry is anxious for the budget<\/h3>\n

Sean Keyes, CEO of Sutcliffe, said:<\/strong> “This is going to be the first Labour budget in 14 years and no doubt one of the most significant budgets in some time, so we are expecting it to be delivered with confidence, reassurance and conviction. The economy has been stifled by the lack of development, inadequate housing stock and investment in infrastructure, therefore the Chancellor must concentrate on delivering the appropriate infrastructure projects to boost economic development.<\/p>\n

“The housebuilding sector has been highlighted as needing \u2018significant intervention\u2019, not only in terms of quality of new housing, but also complex planning systems which fed Britain’s chronic housing shortage, driving up prices and making the market increasingly inaccessible. With that being said, the Prime Minister\u2019s proposals are somewhat positive, and the Government has demonstrated a commendable willingness in the months following the election to remove significant barriers to the construction of new homes and its housing target of 1.5m homes over the next five years. Proposals to improve the quality of homes being built have been acknowledged, and increased construction and investment in unlocking brownfield areas are also a step in the right direction to accelerate economic growth.<\/p>\n

“I anticipate an array of tax-raising changes in Rachel Reeves\u2019 debut budget – which is somewhat worrying considering our tax burden already sits amongst one of the highest. For the business sector to participate and fund this government’s initiatives, it must be certain that the new, higher taxes will be used wisely and not squandered.<\/p>\n

“While this is not confirmed, developers will be immediately impacted by the potential increase in capital gains tax included in Labour’s budgetary policies. Developers are less inclined to take on new projects or extend current ones when profit margins are constrained. There could be fewer applications for planning permission, retrenchment, and delays. These actions, which were meant to boost the industry, could end up having the opposite effect.”<\/p>\n

Steve Cresswell, group CEO of the Chartway Partnerships Group, said:<\/strong> “This week\u2019s autumn Budget is an opportunity to get Britain building again and deliver quality, affordable, accessible, and sustainable homes for everyone.<\/p>\n

“We hope to see clarity on the Affordable Homes Programme beyond 2026, giving housing associations the stability needed to plan and deliver affordable and social housing over the long term. Additionally, with Section 106 alone no longer meeting rising demands, new support mechanisms are essential for robust Affordable Housing delivery.<\/p>\n

“Incentivising energy-efficient, net-zero homes through Stamp Duty relief would encourage buyers to choose sustainable options, propelling the industry toward vital sustainability targets.<\/p>\n

“To translate housing targets into actual homes, demand stimulation is key. Raising the permanent SDLT threshold above \u00a3425,000, introducing a new equity loan scheme for first-time buyers, and collaborating with the private sector to create region-specific incentives are all crucial steps.<\/p>\n

“What is said in this Budget will determine whether we can successfully build 1.5 million homes in the next five years.”<\/p>\n

Dave Dargan, co-founder and CEO of Starship:<\/span><\/b>\u00a0<\/span><\/span>“Tomorrow marks a significant milestone in Labour\u2019s commitment to get Britain building again. To meet the ambitious pledge of delivering 1.5 million new homes, the sector requires not only substantial investment, but also institutional change to sustain confidence over the next four years. This plan, aiming to deliver over 1.5 million homes in the next parliament, addresses key objectives: increasing housing supply, enhancing long-term affordability, and expanding social housing options. The Chancellor\u2019s proposed \u00a368 million investment to unlock brownfield sites for house building will go a long way to helping achieve this. Recognising the need for quality, not just quantity, tomorrow\u2019s budget is a monumental stride toward accelerating economic stability and growth while ensuring high standards are met when it comes to housing, something I am keen to keep holding this government accountable for.\u201d<\/span><\/span><\/span><\/p>\n

 <\/p>\n

Trevor Stunden, Kettel Homes Partner, said:\u00a0<\/strong>“As we approach the Autumn Budget on 30 October, and over 100 days of the Labour government now behind us, housing has and continues to remain a key focus with notable action already taken, including planning reforms and the passage of the Renters\u2019 Rights Bill through its second reading. In Labour\u2019s first Budget in 14 years, there are several areas we now expect to be highlighted affecting the residential property sector.<\/p>\n

“The Autumn Budget is expected to address many of these crucial topics, with the housing sector waiting to see how the Treasury plans to allocate resources and incentives. The next steps taken by the government will play a pivotal role in determining how the housing crisis is managed and whether the ambitious target of 1.5 million new homes can be achieved in a sustainable and socially responsible way.”<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

With the October Budget to be announced in detail on Wednesday, read here about what the construction industry can expect to see.<\/p>\n","protected":false},"author":32,"featured_media":145085,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[666,663,908,276],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-145069","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-affordable-housing","9":"tag-autumn-budget","10":"tag-economy","11":"tag-government"},"acf":[],"yoast_head":"\nWhat to expect in the October Budget for UK construction<\/title>\n<meta name=\"description\" content=\"With the October Budget to 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