BPF Spotlight Series: Reaction to the Autumn Budget
For the latest in our BPF Spotlight Series, our Director of Policy Ion Fletcher shares the BPF's views on the Government’s first Autumn Budget. Here’s what he had to say:
🗣️ Given this Budget’s political and economic significance, there was relatively little that was specifically relevant to the property sector. Bearing in mind the Government’s acute need to fix the public finances, this is not necessarily a bad thing.
The announcement of new, lower levels of business rates for retail, leisure and hospitality businesses is really a case of robbing Peter to pay Paul as it’s to be funded by a higher rate of tax on more valuable properties. While the proposal should support smaller high street properties, it will concentrate the already-too-high business rates burden on even fewer properties in high value areas like London. Still, it was good to see Government acknowledge the need to review the efficacy of empty rates relief and improvement relief.
On the housing front, it’s disappointing that the Chancellor chose not to reverse her predecessor’s decision to abolish SDLT multiple dwellings relief, given the chilling effect this decision has had on new Build-to-Rent development over the summer. A cash boost for the Affordable Homes Programme and confirmation of a new five-year social housing rent settlement are positive, but we would have liked to see Government go further.
Perhaps the most positive take-away from Wednesday's announcement is the Government’s commitment to capital investment in transport and energy infrastructure, both of which are key enablers of real estate development.
Continued devolution to combined authorities and integrated funding settlements for Greater Manchester and the West Midlands are also important in ensuring that regional government can be an empowered partner to the property sector.
Read our full Autumn Budget analysis here.
