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Latest newsCBI pressures delivers planning system changeFollowing our sustained lobbying, the government has moved to ease planning rules to enable existing planning consents to be renewed quickly.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. We welcomed the announcement and will respond to the government's consultation on the new application process later this year. For any further information on property and planning news, or related issues, please email Nick Clements. Deferring business rate bills: regulations publishedIn response to our sustained pressure the government announced earlier this year 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 £600m 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." The regulations have now been published for putting the scheme into effect in England, however identical schemes have also been announced in Wales, Scotland and Northern Ireland. Businesses should be able to benefit from lower rate bills this year from September at the latest. Business Rate Supplements ActDespite our sustained campaign over the past six months, the Business Rate Supplements Act has become law.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'. We argued any proposal to increase business rates at the local level must be put to a business vote in all circumstances – not just when the supplement would constitute one third or more of a project's cost (as specified in the Act). This would have ensured that only projects that deliver meaningful economic benefits get the go ahead, rather than local 'pet projects'. We will now urge opposition political parties to review the Act ahead of the next general election. 2008 Planning Act: end of the beginningThe 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). We will be hosting a half-day conference on the 2008 Planning Act on Monday 20 July, where the recently appointed chair of the Infrastructure Planning Commission (IPC) will provide a keynote address. Community infrastructure levy: regulations awaitedThe 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 we 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 April 2010. We will respond to these draft regulations once they are published. |
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