142: the coalition budget and nationally significant infrastructure

This is entry number 142, first published on 22 June 2010, of a blog on the implementation of the Planning Act 2008. Click here for a link to the whole blog. If you would like to be notified when the blog is updated, with links sent by email, click here.

Today's entry reports on the implications of the budget on infrastructure planning.

Today's budget, the first by the new coalition government, is more positive for infrastructure than the cuts announced last week, reported here.  Here are some highlights.

References are to paragraphs in the Budget Report, although there is one significant quotation from George Osborne's Budget statement that doesn't appear in the report. 

The results of the Spending Review, during which many projects have been suspended, are to be announced on 20 October.

Further to this, there is to be an online event on 24 June for public sector workers to submit their ideas for reducing spending, followed by a period when the general public can do so.  The most promising ideas will be taken forward in the spending review. This process is already being called 'the Axe Factor'.

Investment in general

Para 1.82: no newly-announced project cuts - "As set out in the deficit reduction section of this chapter, apart from the capital element of the £6.2 billion savings in 2010-11 (worth £2 billion a year until 2015-16), the Government will make no further cuts in public sector gross investment compared with the plans that it inherited. Instead it will undertake a fundamental review of all capital spending plans to ensure they are affordable and to identify the areas of spending that will achieve the greatest economic returns."

Page 3: the budget 'refocuses' support for infrastructure, the low-carbon economy and regional development.

Para 1.78: a Green Investment Bank to be created following spending review.  No surprise, as it was in all three main parties' manifestos.

Para 1.81: "[The Government] will continue to encourage increased funding for infrastructure projects from the private sector. It will target public sector investment in infrastructure on those projects with the greatest economic benefit for which private sector capital is not available."

Para 1.83: the organisation Infrastructure UK (previously reported here) is to continue, and will conduct an investivgation into reducing civil engineering costs, chaired by Terry Hill of Arup.  A national infrastructure plan will be published in the autumn.  This is likely to be about investment rather than being anything like a national policy statement, since if past performance is anything to go by, Infrastructure UK and the Planning Act regime are only very loosely integrated.

Planning

Para 1.89: Regional Development Agencies are to be replaced by local enterprise partnerships in natural economic areas (sounds similar to 'city regions') - a White Paper to be issued on this later in the summer.

Para 1.89 as well: simplified planning consents to be encouraged in specific areas needing growth, through Local Development Orders (i.e. new legislation not needed).

Transport

Budget statement: "First, even when money is so short, we will commit to these important regional transport projects: the upgrade of the Tyne & Wear Metro; the extension of the Manchester Metrolink; the redevelopment of Birmingham New Street station; and improvements to the rail lines to Sheffield and between Liverpool and Leeds."

Para 1.123: the government is to explore a switch in air transport duty from per passenger to per plane, to be subject to public consultation - doesn't sound as if this will be coming in any time soon.

Para 2.159: some passenger transport services will be subject to VAT, to be included in this year's Finance Bill.

Energy

Para 1.76: £200bn of investement in energy is needed by 2020 (from public and private spending).

Para 2.102: reforms to the climate change levy are to be included in next year's Finance Bill.

Water and waste

Not much, only Para 2.128: landfill tax is confirmed to increase by £8 per tonne per year until 2014.

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