July 2015 Budget - Infrastructure: 1 Home building: 0
The Chancellor of the Exchequer presented the post-election Budget with a focus on getting the UK’s finances in order, to more productive and balanced economy. With the introduction of the National Living Wage the surprise announcement, the Budget followed most of what had been announced back in March.
What’s the impact on construction?
The best news was extra investment to modernise the infrastructure network by 2021. This is to be delivered through local transport project support, the New Roads Fund and the New Stations Fund. Plans to devolve planning and enterprise zones to local authorities’ management and a cut in corporation tax were also welcomed.
Cutting social housing rents and the tightening of public sector capital budgets will add extra pressure on affordable housing and may possibly hit future development plans. The lack of a credible - new home building programme and the green agenda oversight, were missed opportunities. That could result the industry becoming more reliant on private sector investment.