The use of large up-front fees and disproportionate deposits has already resulted in significant cost consequences for one care provider.
The Chancellor didn’t tell us much more than we already knew about the new Government’s plans for infrastructure over this Parliament and it seems that the Government isn't entirely sure about how infrastructure investment will be spent over the next five years. A National Infrastructure Delivery Plan is due next Spring and will provide more insight into the key projects that will be delivered during this Parliament.
What is good news is the Government’s support for devolution, private finance, smaller infrastructure projects and housing...
The new Government has reiterated its support for devolution of power from Whitehall with the announcements of the £1.8 billion Growth Deals to Local Enterprise Partnerships and the commitments to the West Midlands Combined Authority, the Greater Manchester Combined Authority and the Greater London Authority. However, the £1.8 billion was announced by Greg Clark in March 2016, so this is not new money.
To encourage private finance the Government has extended the life of the UK Guarantees Scheme, but that probably reflects the fact that they haven’t used the scheme for anything like the £40 billion as they had stated at the start in 2012. Large infrastructure projects do take a long time to come to close. The initial pipeline of infrastructure projects set to benefit from Private Finance 2 (PF2) will not be announced until early 2017. In our experience, that means that any projects announced may take at least a couple of years before there is a “spade in the ground”.
The Chancellor focused on smaller infrastructure projects rather than super-sized infrastructure projects which should mean that every pound has more impact at a local level. The issue with large national projects is that they take decades to happen, their costs seem out of proportion, and they have little positive impact on ordinary people. Therefore, it was good news that he announced that the Northern Powerhouse Investment Fund (NPIF) would invest £1.1 billion by 2020-21 in funding to relieve congestion and deliver long-awaited upgrades on local roads and public transport, with a further investment of £220 million for key pinch-points on strategic roads.
We were expecting a big announcement on housing. The Chancellor did commit to a £2.3 billion Housing Infrastructure Fund which will target new private house building with the aim of delivering up to 100,000 new homes in areas of greatest housing need. Grant funding restrictions will be relaxed to allow providers to build a mix of low-cost ownership and affordable rent properties. The NPIF has committed £1.4 billion to deliver 40,000 houses by 2020-21. Also, £1.7 billion has been invested from NPIF in an accelerated construction scheme with the intention of speeding up construction of new homes.
The elephant(s) in the room…
We still need to address the lack of capacity and skills in the construction industry. If we are to build more houses and more infrastructure to encourage investment in the UK pre and post-Brexit we need to increase this training through apprenticeships and further education. If we don’t, then there is a risk we will miss the new housing targets.
The costs of materials are likely to go up because of the fall in the value of the pound. This may mean that the funds announced will not be enough to build the houses and fund the transport projects to the same extent. We can hope that market forces will at some point reverse the fall but with the growing UK debt mountain and the lack of certainty around the UK’s trading and economic status post-Brexit, this will be a challenge.
On a good note…
At least Birmingham now has £5 million to upgrade its rail service. Get rid of those pesky Autumn leaves on the line!
For more information
The government announced on 16 May that it will provide a fund of £400m to cover the costs of removal and replacement of cladding to high rise residential blocks which have failed tests.
Whilst some people are under the impression that preparing a Lasting Power of Attorney (LPA) is simply a case of completing a form and ticking a few boxes, it is about far more than this.
A big fear for some people facing divorce and the inevitable carving up of the matrimonial assets. They seek assurances that such assets will be “ring-fenced” and retained for them.
Thinking about the legal status of being a cohabitant probably isn’t at the top of the ‘to do’ list.
When an individual is thinking about making a gift to another individual, consideration needs to be given to the Potentially Exempt Transfer (PET) trap.
We are now only a few weeks away from the biggest change to data protection laws in over 20 years. Are you compliant?
The tragedy, in this case, is that there were options readily available to the midwives that they could have used. This was not a case of having to go above and beyond.
Arising from the recent Family Division announcement, people who think they are legally divorced may in fact still be married.
The SCCS has issued providers in the scheme a series of updated and new documents in order to assist with their National Minimum Wage review.
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