Summary of mini-budget changes that impact land and property owners
Mather Jamie Managing Director, Rob Cole has summarised the changes announced in the mini-budget on Friday 23 September that impact land and property owners.
The Chancellor of the Exchequer, Kwasi Kwarteng, has announced a package of tax cuts and development incentives designed to boost the economy and generate growth.
He has also decided to reduce Stamp Duty and maintain house sales by raising the current threshold where Stamp Duty would be paid to £250,000 and increasing the threshold for first-time buyers to £425,000, which is designed to assist those keen to get onto the housing ladder.
The plan is intended to ignite growth by lowering taxes and cutting regulation which it is hoped will encourage business investment, drive growth, create jobs, and improve living standards for everyone, thereby promoting confidence in the UK economy. It’s just not clear how this whole package is going to be paid for other than through borrowing in the foreseeable future.
As a means of boosting growth – the key theme of the ‘budget’ - the Chancellor has signalled the prospect of up to 38 ‘Investment Zones’ spread throughout the country.
These will be subject to liberalised planning rules to release more land, introduce environmental regulation reforms and streamline planning policies, as well as less time spent on negotiating affordable housing contributions.
Investment Zones will be located in areas where Councils or Mayoral Combined authorities have volunteered for growth. They will only be established with support from local leaders. This will include detail on the level of deregulation and the streamlined mechanism for securing planning permission’.
The Chancellor said that ‘Legislation will be brought forward in the coming months to address barriers to delivery by reducing unnecessary burdens to speed up the delivery of vital infrastructure’. The ‘Growth Plan 2022’ also lists some 138 capital investment projects, 86 of them road schemes, 10 rail-based schemes, including the East-West line, and 14 Local Transport Projects.
There is no reference to the wider planning reforms which are expected in due course. However, the statement is clear that ‘To make buying a home a reality, the government must accelerate housing delivery'.
This is a pro-growth, reduced regulation, low tax budget that will inevitably create a stimulus that will be widely welcomed by business leaders across the Country.
If you would like our advice concerning changes which may impact your land or property assets please get in touch.