Aecom has called on the chancellor George Osborne to reinforce measures that will continue to guarantee the delivery of a long-term programme of infrastructure projects in his budget, while the RICS wants to see a programme of reform policies to incentivise a “supply-side revolution”.
John Hicks, UK head of government & public at Aecom, outlined five points he would like to see included in the budget:
“First, we want the chancellor to hold true to the commitments made in the 2014 National Infrastructure Plan, including £15bn on roads and a £38bn Network Rail delivery programme. The plan’s more programme-orientated approach should help industry and investors make more informed decisions.
“Second, the government needs to encourage and perhaps incentivise construction and allied businesses to think more creatively to form joint ventures and partnerships capable of leading delivery of major infrastructure projects. Without these combinations, British firms may lose out to international consortia and be reduced to taking Tier 2 roles.
“Third, for industry to equip the UK’s current workforce with the skills required to deliver the major projects of the future, it needs to see the same level of clarity around delivery as has been applied to specifying future projects. Government programmes need to be packaged up with funding streams and clear plans to ensure there is an ample supply of company expertise and skilled workers to deliver them.
“We want the chancellor to hold true to the commitments made in the 2014 National Infrastructure Plan, including £15bn on roads and a £38bn Network Rail delivery programme.”
John Hicks, UK head of government & public, Aecom
“Fourth, we would like the chancellor to be bolder on planning reform to speed delivery of much needed infrastructure, including housing. In London, for example, we want to see the creation of a London City Region Board to better address the infrastructure needs of the 20 million people who live within one hour’s commute of central London.
“Lastly, we want the chancellor to continue to encourage new financing and delivery models. We welcome the nascent return of municipal bonds, but to be successful investment risks must be adequately spread.”
Meanwhile, RICS used its pre-budget statement to suggest four actions that it believes need to be taken to “incentivise a supply-side revolution”.
First, to allow future generations to be a part of a home-owning revolution the institute would like to see the chancellor commit to a review of inheritance tax and its role in the housing market in the next parliament. This move is intended to incentivise over-spaced home owners to sell their homes and downsize, leaving them available for under-spaced buyers.
Second, to encourage an increase in house building RICS wants the chancellor to increase incentives and funding mechanisms for the planning and delivery of housing on brownfield sites, starting with local authorities providing “developer packs” containing all essential survey information for major development sites to developers.
Third, to support infrastructure as an enabler of growth the institute wants the government to ring fence the infrastructure spending pot and index linking it to the Office of Budget Responsibility’s (OBR) assessment of national growth so that it can be expanded as the economy grows.
Finally, RICS would like to see the government encourage the regeneration of the high street. To do this it would like to see the chancellor review the government’s policy on empty property rates (EPR), with a view to exempting all projects relating to the refurbishment, renovation and retrofit of properties from business rates until they are completed.
