2013 Spending Round: property implications | Practical Law

2013 Spending Round: property implications | Practical Law

The property implications of the government's 2013 Spending Round (commonly referred to as its Spending Review), delivered on 26 June 2013, by the Chancellor of the Exchequer, George Osborne. (Free access.)

2013 Spending Round: property implications

Practical Law UK Legal Update 2-532-5007 (Approx. 4 pages)

2013 Spending Round: property implications

by Practical Law Property
Published on 26 Jun 2013 • England, Wales
The property implications of the government's 2013 Spending Round (commonly referred to as its Spending Review), delivered on 26 June 2013, by the Chancellor of the Exchequer, George Osborne. (Free access.)
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On 26 June 2013, in the Spending Round (SR 2013), the Chancellor of the Exchequer, George Osborne, set out the government's long-term plans for capital investment to 2020 and beyond, and its capital spending allocations for all its departments according to its current priorities for 2015-16.
We do not yet have the full picture of the government's plans. Further details will be published in a document called Investing in Britain's Future. We understand from government announcements that this document will be published on 27 June 2013.
Following the publication of Investing in Britain's Future, we will publish a further legal update considering the impact of any statements, which affect infrastructure, transport, housing, flood support defences and council tax, all of which have been mentioned in the SR 2013.
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On 26 June 2013, in the Spending Round (SR 2013), the Chancellor of the Exchequer, George Osborne, set out the government's long-term plans for capital investment to 2020 and beyond, and its capital spending allocations for all departments according to its current priorities for 2015-16.
The government has announced that it will have to make £11.5 billion of cuts to try to reduce the deficit. Despite cutbacks to a number of government departments' budgets, which include those of the Department for Communities and Local Government (DCLG) and the Department of Environment, Food and Rural Affairs (Defra), there are plans for investment.
The government has announced plans to invest in infrastructure, transport, housing and flood support defences. However, we do not yet have the full picture. The SR 2013 states that further details of the government's plans will be published in a document called Investing in Britain's Future. We understand from government announcements that this document will be published on Thursday 27 June 2013 by the office of the Chief Secretary to the Treasury, the Rt Hon Danny Alexander MP.
The government did make general statements in the SR 2013, which are of interest to property practitioners. It will:
  • Infrastructure and housing. Prioritise spending on long-term infrastructure projects and other programmes that will promote economic growth. However, details will be announced in Investing in Britain’s Future of how over £100 billion of infrastructure investment will be allocated over the next Parliament. This will include investment in:
    • the UK's transport network in 2015-16 in the sum of £9.5 billion. There will be long-term capital budgets for national roads, local roads, Transport for London and HS2.
    • housing. The government will set out its approach to affordable housing in Investing in Britain's Future.
  • Council Tax. Make funding available to support local authorities that choose to freeze their council tax in 2014-15 and 2015-16. The government also plans to set a council tax referendum threshold in each of these years, that will give local people a say if their council tax rises by more than two per cent.
  • Flooding. Support flood defences, with resource spending remaining at current levels in cash terms, although Defra will see a 10% budget cut. The Chancellor also announced that the government will set out plans for a major commitment to new flood defences for the rest of this decade. Further details will be set out in Investing in Britain's Future. The aim is that this public investment in existing flood protection and new schemes will support the insurance industry to maintain available and affordable flood cover for households.
  • Heritage. Work with English Heritage to consult on establishing a charity to care for the historic properties in the National Heritage Collection on a self-financing basis, supported by government investment of £80 million.
For a brief synopsis of the environmental and construction law implications of the SR 2013, see Legal updates:
Sources: