Response to the Spring Statement

The Spring Statement took place in difficult economic and global circumstances – not least a £20 billion hole in the public finances, a shrinking economy and considerable concern about potential Trump tariffs.

But the Chancellor’s announcement today contained some good news for the planning and development sector.

The OBR’s estimation is that the changes to the NPPF are set to have the biggest positive growth effect in today’s forecast, with no fiscal cost. The increase in housing supply alone, it predicts, will increase GDP by 0.2% by 2029-30, adding £6.8 billion to the economy.

Of course these figures are nothing more than projections: they require a series of ‘moving parts’ to be put into place very carefully before the financial (and other) benefits are achieved. I, together with my colleagues in LRG’s New Homes division, have stated many times that increased housing delivery requires more than planning consents.

And so it’s reassuring that the Chancellor has committed £600m for construction training to meet the severe resourcing issues, along with a £2bn top-up for the Affordable Homes Programme to help deliver ambitious levels of social and affordable housing.

Similarly, it’s good to see that the Chancellor has understood the detrimental impact that the Building Safety Levy would have had on housebuilders if implemented as planned, and has delayed it by a year.

What a difference a year makes. This level of government support for housebuilding is long overdue and we look forward to working to achieve the OBR’s aspirations for our sector.