CPA Bulletin

www.cpa.uk.net CPA Bulletin > May 2023 25 POLICY: 2 and Greater Manchester respectively on the role of infrastructure spending and growth. Yet frustrations remain around the state of rail services in the north, especially on the east - west coast capacity and routes. Following on from the comments from John Armitt, the National Infrastructure Commission recently called for government to focus further on the development and creation of projects, with policymakers looking at their long-term viability and timing. The Commission report said the government needed ‘policy staying power’ to deliver long-term goals. It urged government to move away from ‘small scale funding and repeated consultations’ to focus on fewer but bigger projects, allowing regional centres greater funding and decision making powers. It said unblocking the planning regime for nationally significant infrastructure projects was the first big step. All this comes at a time when as a country, we are meant to be decarbonising the economy, with construction and infrastructure development key to meeting our net zero targets. We have heard similar commitments and announcements from government before. The government allegedly, still aims to build upwards of over 300,000 new homes by 2025, yet there remains major shortfalls in the construction skills workforce, with well documented opposition from the government’s own backbenchers on reform to the planning system and fears around building on the countryside. This is not a new problem. Both Labour and Conservative governments have outlined plans to build more homes in every election fought since the Second World War, yet the rhetoric fails to match the reality. The Spring Budget provided some form of clarity towards the government’s thinking and plans. This included the announcement of 12 investment zones placed around the country. Each zone will benefit from enhanced Capital Allowance Rates, and relief from Stamp Duty Land Tax, Business Rates, Structure and Buildings Allowance, and National Insurance contributions from employers. These zones have the potential to boost business investment and economic growth, however, they must match and complement existing schemes in place that operate at a devolved level. Duplication of effort will add to bureaucracy and cause confusion for companies looking to take advantage of these areas. The creation of Great British Nuclear to drive a civil nuclear programme as part of wider efforts to decarbonise the economy, will hopefully, provide some degree of certainty for the construction industry, however this as ever with projects like this, it remains very much at the planning stage and will remain a medium to long-term goal for the moment. The caveat with all these plans is the oncoming general election expected next year. Each party will outline their policies around what they would do differently from before, how they remain committed to building new homes for a growing population, how our infrastructure networks need reform and how the rail network is in need of further growth and development. As ever - we need to see boots and spades in the ground before these plans start to become a reality. And even then, the politics might get in the way.