The Autumn Statement has been announced in parliament today and has left some questioning how the government’s key levelling up programme will be achieved.
Chancellor Jeremy Hunt laid out the government’s financial plans, which includes tax rises, an increased windfall tax on oil and gas firms and benefits and pensions being raised in line with inflation.
Hunt also made clear the government’s intention to move ahead with the controversial developments of Sizewell C nuclear plant, HS2 and Northern Powerhouse rail.
But ‘investment zones’, brought in under Liz Truss to drive growth by reducing tax and relaxing planning regulations, would be altered he said: ‘I will also change our approach to investment zones which will now focus on leveraging our research strengths, to help build clusters for our new growth industries.’
The statement has left some wondering how the government intends to achieve its levelling up agenda under this measure, as they say this will largely benefit areas which are already prosperous.
Andrew Williams, MD of planning consultancy Boyer, said: ‘The Chancellor launched the Autumn Statement by stating three key commitments: stability, growth and public services. But the fine print also states: “To achieve this aim, the government has reversed nearly all the measures in the Growth Plan 2022”.
‘So are these three measures of equal importance? Not surprisingly, stability – political stability ahead of the next general election – is a higher priority than growth.
‘This is demonstrated by the lack of major spending commitments in development and infrastructure: the announcements regarding HS2, Sizewell C, East West Rail and Northern Powerhouse Rail are not new initiatives.
‘The new form of investment zones is a means of enabling growth in the areas already geared up for it – avoiding the problem of introducing development to the areas most resistant, which previously cost the Government two by elections and condemned the Planning White Paper to the scrap heap. Jeremy Hunt’s considerably revised investment zones will benefit existing R&D clusters, presumably including the already prosperous Oxford / Cambridge / London ‘golden triangle’. But how does the sit with the levelling up agenda, the express aim of which is to redirect growth in the areas that need it most?’
Hunt also mentioned the government’s intention to improve energy efficiency, which was welcomed by many, but some campaigners say the plan is ‘far too little and far too late.’ The government would not invest another £6 billion to the £6.6 billion already being funded until 2025.
Polly Billington, Chief Executive of UK100, echoed these thoughts and highlighted the results of a recent YouGov poll which showed 69% would support an energy efficiency plans focused on social housing.
This could be based on the current Social Housing Decarbonisation Fund, but instead of local authorities competing for funds, money could be given out on a needs basis. This could lead to 550,000 social houses being upgraded by 2028, supporting 40,000 jobs and helping residents to save £1,500 in the first year alone.
‘We would urge the Chancellor to look at our new #EndTheWaitInsulate report,’ said Billington. ‘It sets out an oven-ready, cost-neutral plan to urgently upgrade the energy efficiency of social housing across the country to protect some of the most vulnerable households from soaring energy bills.
‘Ultimately, we’re glad to see the message is slowly getting through on energy efficiency. But we need more urgency and detail. We also want reassurance that local leaders are a part of the plan. Any focus on energy efficiency amidst the energy crisis is welcome, but we need to move quickly to end the wait and insulate.’
Photo by David W. Meyer
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