黑洞社区

The Queen鈥檚 speech has received a mixed reaction from the industry.

Trade bodies welcomed the banking reforms, but concerns were expressed over the Business Rate Supplements (BRS) Bill .

The Federation of Master Builders (FMB) branded the bill as 鈥測et another kick in the teeth for a construction industry already suffering as a result of the credit crunch鈥�.

Commenting on the speech, Brian Berry, director of external affairs at the FMB, said: 鈥淎t a time when 60% of FMB housebuilders are reporting falling workloads, the last thing builders need is yet another tax. The government says it wants to help the construction industry, but again has done the exact opposite by introducing more regulation and another tax that will disproportionately hit SME builders.

鈥淭hese new taxes will drain business resources, disproportionately impact on SMEs and increase the competitive advantage of the informal economy. All of this impacts on the overall competitiveness of the construction sector and may be the final blow for many companies.鈥�

The CBI also voiced its concern over the bill.

鈥淎dditional funding is needed for big infrastructure projects, especially Crossrail,鈥� the CBI's deputy director-general, John Cridland, said, 鈥渂ut now is not the time to bring in new powers to raise tax more widely from business.

鈥淭he CBI wants, at the very least, for firms to be able to vote on every proposed local business rates supplement, so firms aren鈥檛 saddled with a potential 拢1bn annual tax increase without a proper say in the process.鈥�

The British Property Federation, however, said it welcomed the BRS Bill, though it warned that funding for business improvement districts (Bids) could suffer as a result.

A Bid is a public-private partnership whereby businesses in a specific area elect to pay an additional tax that will fund improvements to the district鈥檚 public realm and trading environment. Retailers in London鈥檚 West End, for example, use a Bid to enhance security and improve street cleaning.

We thereby urge the government to amend the existing legislation to allow Bids to raise finance from property owners on a mandatory basis

British Property Federation

James Anderson, policy officer at the BPF, said: 鈥淭imes are tough for owners and occupiers and while the additional funding raised through the business rate supplement will benefit London鈥檚 infrastructure in the long term, we are concerned that funding for existing Bids may suffer as a result.

鈥淲e thereby urge the government to amend the existing legislation to allow Bids to raise finance from property owners on a mandatory basis, where they consider it appropriate and possible to do so.

鈥淭his will be fairer for those landlords that already make voluntary contributions and occupiers such as small businesses, who Bids might turn to for any funding shortfall as a result of the business rate supplement. Ultimately, such a move would allow Bid finances to be put on a more sustainable footing.鈥�

There was no dispute in the construction industry over the Banking Reform Bill, however, which was received warmly by industry leaders.

Under the bill, large fines could be introduced for banks accused of not lending money responsibly, and the Bank of England, the Treasury and the Financial Services Authority (FSA) would be allowed to intervene sooner to prevent another banking crisis,

General secretary of Ucatt Alan Ritchie described it as a 鈥渁n important measure鈥�.

鈥淏y introducing these sanctions it should help restore confidence in the industry and encourage companies to start building again,鈥� he said.

The National Housing Federation also welcomed the bill, but chief executive David Orr warned it should focus on preventing lenders from 鈥渦nreasonably changing the terms and conditions of loans given to housing associations鈥�.

He added: 鈥淎t a time when the building of new affordable homes is slowing down by record rates we need to remove any unreasonable obstacle to housebuilding.

鈥淲e are facing a housing national crisis 鈥� and housing associations, who build this country鈥檚 social housing, need all the help they can get to carry on building through the credit crunch.鈥�

Other measures announced included the government鈥檚 Education and Skills Bill, which was welcomed by Ucatt.

At a time when the building of new affordable homes is slowing down by record rates we need to remove any unreasonable obstacle to house building

National Housing Federation

The bill aims to ensure that by 2013 every 鈥渟uitably qualified鈥� young person will be given an entitlement to an apprenticeship.

鈥淭his measure is long overdue,鈥� said Ritchie. 鈥淢any construction companies treat training and apprenticeships with contempt. We are now experiencing the twin problems of an aging workforce and a skills gap. It is only through statutory measures that employers will be forced to train the skilled construction workers of tomorrow.鈥�

The Community Empowerment Bill was also introduced, which includes measures to restructure regional planning in England, along with the Marine and Coastal Access Bill which will lead to the establishment of the world鈥檚 first systematic spatial planning system for UK waters.

The policy director of the Royal Town Planning Institute (RTPI) said the Community Empowerment Bill would bring 鈥渕uch needed certainty to the forward shaped of England鈥檚 regional planning system鈥�.

However, he added that the RTPI would be calling on the government to 鈥渞ecognise the urgent need to set out the shape of the new system, and build public and professional confidence in it鈥�.

On the Marine and Coastal Access Bill, Jed Griffiths, chair of the RTPI marine spatial planning task group, described the proposal as 鈥済round breaking鈥�.

鈥淚t demonstrates the government鈥檚 commitment to use spatial planning to deliver better social, economic and environmental outcomes from increasingly complex and conflicting marine-based activities and development proposals,鈥� he added.

A spokesperson for the RICS, however, added that the bill would need to ensure the support of landowners and land managers if it was to be effective.

鈥淚t must include compensation and an appeals procedure,鈥� he added. 鈥淐oastal partnership between citizens and landowners is important but where a path poses a security threat or has a substantial impact on productive land use, there should be a fair and transparent appeal process."

On the Local Democracy, Economic Development and Construction Bill, the CBI's John Cridland commented: 鈥淭he CBI supports the government鈥檚 attempts to streamline the regional tier of governance and create a single integrated regional strategy to drive economic development.

鈥淗owever, we cannot become obsessed by structures and processes and must ensure that this reorganisation results in enhanced economic development, especially at this difficult time,鈥� he added.