THE NEW CHANCELLOR of the Exchequer, Rachel Reeves has confirmed mandatory housebuilding targets in her first speech in the post.

Rachel Reeves announced mandatory housebuilding targets for England, and the loosening of planning rules to encourage more new homes.

The housebuilding target, already provided in the Labour Party manifesto, is 1.5 million homes over the next 5 years. This equates to 300,000 homes each year – but the target may be backloaded to the later years of the government’s term.

Mandatory Housebuilding Targets

Additionally, a new taskforce is to be created to re-start stalled developments. It will begin with Liverpool Central Docks, Worcester Parkway, Northstowe and Langley Sutton Coldfield, representing 14,000 homes.

Support will be given to local authorities to recruit 300 additional planning officers across the country.

Planning reforms, to the National Planning Policy Framework, will begin with a consultation on a growth-focused approach to the planning system before the end of the month.

Local plans are to be universally implemented and there will be a review of greenbelt boundaries. More social and affordable homes are to be built.

Rachel Reeves UK Chancellor of the Exchequer

Rachel Reeves said, “Our antiquated planning system leaves too many important projects getting tied up in years and years of red tape before shovels ever get into the ground.”

She also lifts a ban on onshore wind in England, and delayed decisions on infrastructure projects will be prioritised.

Other priorities are to create an industrial strategy and reform of the skills system.

INDUSTRY REACTIONS

Serious Question Surrounding Skills Shortages

Brian Berry, Chief Executive of the Federation of Master Builders

Brian Berry, Chief Executive of the FMB said: “There are many positives to take from the new Chancellor’s announcement today for the nation’s local house builders. The restoration of mandatory local housebuilding targets will be crucial to meeting Labour’s ambition to build 1.5 million more homes, and it is essential that SME builders are included in this process, so that market diversity in can be restored. More information on Labour’s much-trailed ‘Grey Belt’ proposals are also welcome as land to develop upon is in short supply.

“However, the UK is currently experiencing a construction skills crisis, and there are serious questions to be asked about how deliverable any of this is, without a long-term training and skills plan to ensure the workforce is in place.”

“The Chancellor’s confirmation that a new draft National Planning Policy Framework (NPPF) will be published before August, including enhanced presumptions in the planning system in favour of sustainable development is a positive step forward and one that should help local house builders. To pull this off will require government departments working in tandem to ensure we have the skilled workers available to deliver these plans. The Government now needs to address how the skills shortage will be tackled.”

Small Housebuilders Strategy Needed

Federation of Small Businesses (FSB) Policy Chair Tina McKenzie, said: “It’s good to hear the new Government setting a target of 1.5 million homes in the next five years and it will not be possible to reach these numbers without the contribution of small construction firms. Small housebuilders are the key to achieving ambitious housebuilding targets.

“It’s integral that a Small Housebuilders Strategy is created to put small businesses front and centre of decision-making, so the builders who have had the hardest time in recent decades can deliver the outcomes the new Government seeks.

“We hope this will be the start of a renewed focus on getting Britain building again, and that the new Chancellor Rachel Reeves will follow up with further much-needed reform such as to the Community Infrastructure Levy, so it’s no longer an upfront charge.

“It’s good to see a clear statement from the new Government that it will focus on the growth that our economy needs.”

Direction of Travel

Lee May, partner at law firm DMH Stallard

Lee May, partner at law firm DMH Stallard and planning specialist, said: “Rachel Reeves has made planning reform the focus of her first speech as Chancellor of the Exchequer.

“Amongst the announcements are the reintroduction of housing targets for local authorities, a review of green belt boundaries and a revised NPPF which focuses on growth.  The plan is to accelerate the delivery of housing with a target of 1.5m homes over the next 5 years. New social housing, in particular homes for rent, are also a key objective.

“The government is also keen to ensure that the necessary infrastructure comes forward with an end to the ban on on-shore wind and new policy statements regarding critical infrastructure expected.

“This will be welcomed by developers, and those trying to get on the housing ladder.  Those opposed to development, particularly in the green belt, may not be so keen on the direction of travel.”

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