CBI - Property and Planning

In response to sustained pressure from the CBI the government announced earlier this month that businesses would be able to defer up to 60% of any increase in their business rate bills across three years. It was expected that all businesses would have seen a 5% increase in rate bills due to the uncommonly higher rate of RPI inflation last September.

Depending on how many businesses decide to take advantage of this measure, it could save г600m this financial year. CBI director-general, Richard Lambert said: "Although this change will not reduce the tax burden on companies, it will allow them to pay the 5% increase over three years instead of one. This is a step in the right direction, helping companies at a critical time by improving cash flow."

This change will currently only benefit businesses in England. The CBI will be in conversation with the devolved administrations to understand how the measure will affect businesses on a UK-wide basis.

For any further information on property and planning news, or related issues, please email Luke Jouanides

Empty rates at the heart of CBI budget submission

We have called upon the government to take action through our 2009 budget submission to reduce business rate burdens to encourage investment and enterprise through the economy. We continued to voice our opposition to the planned 5% hike in business rates, and have also called upon the government to reverse the 2008 changes to empty property rate relief.

The CBI have joined with the British Property Federation to support the launch of a new interactive website on empty rates. CBI deputy director-general, John Cridland said: "Extra taxes on empty buildings are damaging business. This website forces government to confront this fact. When firms are forced to cut back in a recession, they need encouragement, not taxes on their empty buildings. Reintroducing the previous reliefs would help business deal with the recession. Rates on empty property have forced companies to cut staff, and can make the difference between surviving the downturn and going to the wall."

We encourage all our members to visit the website, and submit views and case studies on how the 2008 changes to empty rates have undermined their business.

Business rate supplements: Business must have vote

Over the past few months we have been campaigning to amend the Business Rate Supplements Bill. The bill will empower local authorities to levy a supplement of up to two pence on the non-domestic multiplier to fund local 'economic development projects'.

The CBI believes that any proposal to increase business rates at the local level must be put to a business vote to ensure that only those projects that deliver meaningful economic benefits get the go ahead, rather than local 'pet projects'.

Karen Dee, CBI head of infrastructure, gave oral evidence to the committee of MPs examining the bill in January. The bill will receive its second reading in the House of Lords on 22 April 2009. Read the bill briefing (PDF, 34 KB)

CBI calls for planning consent extension

We have written to government calling on them to review the regulation of unimplemented planning consents.

Currently, planning consents are time limited, often for only three years. In the current economic climate there is a risk many planning consents will lapse because of a lack of market demand, or difficulties in obtaining finance to build out schemes.

Prior to the reform of the planning system in 2004, planning applicants could apply to lengthen a planning consent without having to submit a full new application.

Neil Bentley, CBI director for business environment, said: "We want to make sure builders and developers can get to work quickly when firms are in a position to build again and not hold back the prospects of recovery by forcing them to jump through costly and uncertain planning hoops because their consent has lapsed... Current planning laws need to recognise the exceptional economic environment that we face at the moment." Read the full story

2008 Planning Act: end of the beginning

The successful enactment of the Planning Act was a real achievement for the CBI in 2008. The UK faces a number economic and environmental challenges over the coming decades which will require the delivery of an unprecedented amount of investment in the country's ageing infrastructure networks - this cannot be held up due to unnecessary delays in the planning system.

The Planning Act however is the end of the beginning. Over the coming year the government will be consulting on the nature and content of a number of new national policy statements that will guide the decisions of the newly establish independent Infrastructure Planning Commission (IPC).

The timing of these are detailed in a recent government document. We will respond to these in due course.

Community infrastructure levy: regulations awaited

The Planning Act has established powers for local authorities to charge the new community infrastructure levy (CIL). As a consequence of lobbying from the CBI and other industry groups the government amended the act in some important respects.

First, CIL will only be chargeable on all 'new buildings', this will exclude many infrastructure related development activities (such as new pipelines, telephone masts, and pylons) from paying CIL.

Second, the government removed all references to 'land value', and 'land value uplift' from the act which suggested that CIL could be used as a mechanism for taxing development-gain, akin to the planning-gain supplement which CBI lobbied vigorously against.

Some outstanding issues do remain, such as the relationship of CIL with existing section 106 planning obligations and how CIL liabilities can be lowered or waived on a site-by-site basis. The government is expected to publish and consult upon draft regulations later in 2009 that will enable local planning authorities to charge CIL from October 2009. The CBI will respond to these draft regulations once they are published.

Latest news

CBI pressures achieves government business rate U-turn

Empty rates at the heart of CBI budget submission

Business rate supplements: Business must have vote

CBI calls for planning consent extension

2008 Planning Act: end of the beginning

Community infrastructure levy: regulations awaited

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