Osborne fuels growth with 21 enterprise zones

Aaron Morby 13 years ago
Share

Chancellor George Osborne has set out the Government’s plans to refuel Britain’s stalled economy.

Osborne unveiled 21 new enterprise zones, major planning reforms to help builders and a £250m package to help first time buyers.

In a Budget that strips away red tape, he said the first 10 enterprise zones will be in: Birmingham and Solihull; Leeds; Sheffield; Liverpool; Greater Manchester; West of England; Tees Valley; North Eastern; The Black Country; Derby & Derbyshire with Nottingham & Nottinghamshire.

The Mayor of London later announced that the Royal Docks in East London will be designated an enterprise zone, mirroring the Isle of Docks more than 20 years ago.

These zones will function as havens for development, benefiting from zero business rates and deregulated planning.

The Chancellor also committed to funding 21 new university technical colleges, double the number previously earmarked and pledged to create 50,000 more apprenticeships.

In his widely trailed Budget for growth Osborne said the proceeds of the bank levy will fund a £250m commitment to first time buyers, called FirstBuy.

This is intended to help 10,000 home owners get onto the ladder for the first time and support up to 50,000 jobs in the house building industry.

Stamp duty will be levied on mean value not bulk value of homes, which will promote institutional investment.

The Chancellor ushered in planning reforms to prioritise growth and jobs and will force planners to presume in favour of sustainable developments, but Green Belt will be protected.

The Government will also insist that planning is handled in 12 months.

He also pledged to introduce in full Lord Young’s health and safety reforms.

The Chancellor released £100m to develop four new science centres of excellence in the country.

He said: “This is a Budget for making things not making things up. We have a plan and we are sticking to it.

“We have put fuel into the tank of the British economy.”

    Construction Budget in brief

  • 21 new enterprise zones
  • Pilot public sector land auctions
  • New 12 month guarantee for planning and appeals
  • £200m extra funding for rail projects
  • Sheffield retail quarter regeneration scheme
  • Extra £100m for councils to repair potholes
  • £250m for first time buyers
  • £100m for four new science centres
  • 24 new university technical colleges by 2014
  • Redoubling line from Swindon to Kemble
  • General Budget in brief

  • Growth down from 2.1% to 1.7%
  • Corporation tax down 2% in April
  • Fuel duty down 1p/l tonight
  • Tax allowance rises £8,105 in 2012
  • Borrowing down £146bn to £29bn by 2015/16
  • 50,000 more apprenticeships over 4 years

Reaction

Stewart Baseley, chairman of the Home Builders Federation, said: “The severity of the housing crisis dictates that work doesn’t stop here. It is crucial that all today’s announcements are built on, regulation is reduced, land supply increased and the planning system simplified.

“The Budget shows ministers are listening and serious about tackling our housing crisis. This is a very positive start.”

“The Chancellor’s commitment to switch to a ‘presumption in favour of sustainable development’ based planning system, where the default answer is ‘yes’, is also a positive statement of intent.

“If the Government is to meet its commitment to increase housing supply, more permissioned land must be made available.”

HBF still believes that further action on reducing regulation is required, to supplement announcements today that the Minister will write to Local Authorities with regards to Section 106 ‘infrastructure tariff’ payments, and on more sensible carbon efficiency targets, if more potential housebuilding sites are to become viable.

Michael Ankers, chief executive of the Construction Products Association, said: ‘We welcome the serious attempt to unblock the planning system, encouragement for sustainable development, opening up economic activity with the introduction of Enterprise Zones and helping first time buyers access the housing market.

“The Chancellor has recognised the enormous difficulty the housing market has been facing for several years and the introduction of financial help for first time buyers is a much needed boost. However, this is a very modest step and is unlikely to make much of a dent in the 100,000 shortfall of new build that this sector is currently facing.

“The government has made a big play on its desire to make the UK an attractive place to do business and we welcome a number of the measures, including reduction in corporation tax, support for fiscal initiatives and improved R&D tax credits, but we were very disappointed to see the early introduction of a carbon floor price which could well drive business investment away from the UK.”

Latest news

Equans suffers £146m loss and quits new build housing

Losses hit £99m on housing association new build work
4 hours ago

Job cuts at modular house builder TopHat

Offsite housing specialist acts in response to "challenging market"
5 hours ago

Graham wins £85m Milton Keynes Lakes Estate revamp

Enabling works start ahead of building 200 council homes
4 hours ago

Go-ahead for London’s largest estate £1bn rebuild

Spring start for first job at Stratford's Carpenter Estate scheme
18 hours ago

Costain trials electric vans on major civils sites

Green vans meet "tight budgetary requirements" in pilot scheme
21 hours ago

Green light for major mixed-use scheme in Ealing

Scheme will provide 10,915 sq ft of industrial workspace alongside 140 new homes
4 hours ago

Taylor Wimpey sees tender inflation fall to 1%

House builder retenders site work as build costs slide
1 day ago

Careys back in profit after £47m turnaround

Contracting division back in profit ahead of three-year growth plan
2 days ago

Rye Demolition goes into administration

Another specialist contractor goes under
1 day ago

Historic breakthrough for HS2’s longest tunnel drive

TBM Florence ends her 10 mile journey under the Chilterns
2 days ago

Volumetric builder Tide seals deal to start London tower

32-storey North Acton tower will consist of 462 co-living units
1 day ago

Costain moves HQ to London’s Can of Ham

Contractor makes return to London from Maidenhead base
2 days ago

Former Keltbray highways MD joins McAlpine

Vip Gandhi takes lead role at Transport division
2 days ago

Willmott Dixon exits stage left from Essex theatre contract

Contract re-tendering shines spotlight on growing schism between contractors and clients
2 days ago

Purpose build student schemes to surge again

Unite assembles record £1.3bn pipeline as fall in HMO supply boosts PBSA sector
2 days ago

Bidding starts for £1.4bn Midlands Rail Hub Alliance

Alliance will deliver upgrades to rail lines and stations around Birmingham and nearby towns
2 days ago

Brickability sounds warning over materials demand

Distributor sees lower sales lasting for longer before house building recovers
2 days ago

English Cities Fund raises extra £200m for work pipeline

Muse, Homes England, L&G partnership to double in size
2 days ago

Go-ahead for 64 homes at former Glasgow Coliseum theatre

Robertson-owned developer Urban Union to build four housing blocks at site
2 days ago

Competition probe launched into 8 major house builders

Cartel watchdog says volume house builders may have exchanged competitively sensitive information
3 days ago

Cement-free concrete firm falls into administration

DB Group also owned Pudlo waterproofing products
3 days ago

Everton Stadium now structurally complete

Laing O'Rourke lifts final concrete terrace section into place
3 days ago

HS2 launches third London Northolt tunnel TBM

1,700 tonne machine begins 3.4mile dig under the capital
3 days ago

Willmott Dixon set for Manchester science park job

Contractor understood to be in final stages of talks to land £75m Greenheys building
6 days ago

Transport jobs get £4.7bn of cancelled HS2 cash

Government details funding for North and Midlands from 2025
3 days ago

Stewart Milne went down owing supply chain £153m

So far 1,375 firms have come forward with unpaid bills
7 days ago

Didcot disaster investigation enters its ninth year

Still no answers for families of quartet killed in demolition collapse
6 days ago

Mount Anvil wins £275m Westminster estate renewal

First phase of Church Street area regeneration will deliver 400 new homes and a library
7 days ago

Trio of A47 road upgrades to go-ahead as legal challenge fails

20-month delay adds tens of millions to dualling costs
7 days ago

Skanska and Morgan Sindall win £277m duo of Cambridge jobs

Railpen awards £200m Botanic Place and £77m Devonshire Gardens office jobs
1 week ago

Contractor services