Devolution focus for Local Authorities ADEPT’s response to the Chancellor’s Budget
PRESS RELEASE For immediate issue 17th March 2016
ADEPT, the Association of Directors of Environment, Economy, Planning and Transport has commented on key sections of the budget.
Economic growth Heather Barnes, ADEPT President said: “We are pleased to see new devolution deals in non-metropolitan areas of the country, something which ADEPT has been asking of government for some time.
ADEPT members want to drive good growth in our local economies. To do that, we need certainty and a genuinely powerful incentive to grow those local economies. We cannot plan for vibrant and resilient places if the funding rules keep changing along the way.
“So we look forward to working with Government to properly plan the post 2020 local government funding system so that we see a better alignment of local growth and that growth dividend being ploughed back into local economies and local services.
Business Rate Retention The government will pilot the approach to 100% business rates retention in Greater Manchester and Liverpool City Region and will increase the share of business rates retained in London.
Raising the threshold to £15k, exempting 600,000 firms and 100% retention has implications for local authorities moving away from central government grant by the end of the Parliament.
Heather continued: “ADEPT members will be pleased to see that the intention to change to 100% business rates retention will be piloted before being introduced across the country. There are real concerns amongst Local Authorities on the implications of losing the central government grant and the uncertainty of returns on business rates when exemptions are being increased.”
On regional investment The Association welcomed the government’s commitment to regional funding through the Local Growth Fund but would like to see a focus for transport beyond the North.
Heather said:: “Of course, we welcome the commitment to the Northern Powerhouse, but ADEPT would like to see the same level of investment in other areas of the country. While the latest round of Local Growth Fund will provide successful bidders with a real boost to local economic investment, commitment to the regions is inconsistent in the main.”
On two of the key areas of interest for Local Authorities – Housing and Transport,
Housing Simon Neilson, Chair of ADEPT’s Planning, Housing and Regeneration Board said: “A further raft of changes and initiatives risks yet more complexity in an already busy landscape. What the Budget doesn’t appear to do is consider ways in which existing permissions for housing can be delivered. That surely is the real prize to drive up the housing delivery our country and economy desperately needs. Planning is but one part of a complex market dynamic. “Taken together with further measures that encourage yet more demand for housing, through Lifetime ISAs for example, there is the potential for these measures to backfire for Government. If a builder can wait and achieve more for their product with rising prices and strong demand, what incentive is there to build out now?” Transport Mike Ashworth, Chair of the ADEPT Transport Board said: “The recognition of the importance of transport infrastructure is welcome, although we must not lose sight of the need to adequately maintain our existing infrastructure. ADEPT will continue to press Government to fully recognise the needs of those parts of the country outside London and the North
“The launching of the second Road Investment Strategy is also important, and ADEPT will look forward, directly and through the sub-national transport bodies, to ensuring that this fully reflects local needs for connectivity and stimulating economic growth.”
ENDS
Notes to Editors:
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The ADEPT Prospectus for Growth can be downloaded at: http://www.adeptnet.org.uk/cms/files/prospectus/Policy%20Prospectus%202015.pdf
About ADEPT The Association of Directors of Environment, Economy, Planning & Transport (ADEPT) represents local authority county, unitary and metropolitan Directors. Operating at the strategic tier of local government, members are responsible for delivering public services that primarily relate to the physical environment and the economy, but which have a significant impact on all aspects of the nation’s well-being. ADEPT represents members' interests by proactively engaging central Government on emerging policy & issues, promoting initiatives aimed at influencing Government policy and through the development of best practices and responding to European and UK Government initiatives and consultations.
For more information on ADEPT please visit the website: www.adeptnet.org.uk