Construction reaction to Queen’s Speech, part 1

Reaction to the plans for devolution and HS2.

Yesterday saw Her Majesty the Queen set out the Government’s legislation plans in her speech.

In front of the House of Lords and with the watching Members of Parliament, the Queen delivered the first all-Conservatives speech since 1996 following their overall majority in the General Election.

The Prime Minister, David Cameron, is now pressing on with pushing forward a number of different legislative changes, many of which are important to the construction industry.

Those in particular that are prominent to the industry are the Enterprise Bill, Housing Bill, Cities and Local Government Devolution Bill and the High Speed Rail Bill.

UK Construction Media has taken a look at industry reaction to all these bills and whether they are seen as beneficial to the construction industry.

The Cities and Local Government Devolution Bill will see power handed over to cities with elected metro mayors which will help to build a northern powerhouse.

This is a long-term plan of the Chancellor of the Exchequer, George Osborne, which has been agreed in Manchester but is expected to be rolled out across major cities in the country. This will allow other cities to take responsibility for issues like transport, housing, skills, health and social care.

Edward Tuttle is the Senior Policy and Public Affairs Manager at the Chartered Institute of Building (CIOB), and he is pleased to see the positive approach of devolution to cities.

He said: “The CIOB is pleased to see the Government’s commitment to devolve more powers to local authorities; helping work towards full employment.

“This is positive news for the construction industry and with over 17,000 managers needed in the sector over the next four years, a career in the industry has the potential to deliver on the Government’s aspirations.”

The British Property Federation (BPF) echoed the thoughts of CIOB, citing “enormous potential” that would encourage growth in the real estate industry, but Melanie Leech, Chief Executive of BPF, went further when saying that this chance of ‘unlocking regeneration’ should be rolled out to areas where there are no mayors.

She said: “The announcement of the Cities and Local Government Devolution Bill is a welcome step forwards, and is something that holds enormous potential for the real estate industry. The BPF has long advocated the role that devolution can play in unlocking regeneration and growth around the country, and the potential it has for the creation of jobs, homes and infrastructure.

“We would like to see the Government take this forward by appraising Government initiatives and build on those growth and city deals that are already in place such as City Deals and local Enterprise Partnerships, and to focus on devolution across the whole country, not just in relation to the northern powerhouse.

“We urge the Government to allow all areas of the UK, not just those with a Mayor, to be able to benefit from these new, devolved powers.”

Nick Baveystock, Director General of the Institution of Civil Engineers (ICE) waded into the devolution debate and firmly believes that it should bring about higher productivity but stressed that the model of handing down the power cannot be the same for each area, and indeed some needs will be different.

“I welcome the Government’s invitation to give city regions the political tools to start shaping their own futures,” he said.

“Devolution can help drive productivity in areas often overlooked by Whitehall, helping to rebalance growth throughout the UK. There is now ‘one-size fits all’ model and Government should devolve powers according to the needs, ambition and capacity of each area.

“Local Government may also need help in driving through the changes so that they make best use of powers for their own communities.”

Turner & Townsend’s Managing Director, Jon White, described the case for devolution as “compelling” but thinks that there are challenges in both expecting cities to accept the mayor-led model, and is adamant that the pressure to use the devolved powers should not lead to a ‘piecemeal’ approach.

He said: “The new Government has already invested so much political capital in the idea of English city devolution that it has to work and be seen to work.

“But its insistence that cities embrace the mayor-led model favoured by Manchester could prove an early stumbling block.

“Ultimately the debate about mayors is likely to be a short-lived sideshow. The case for devolved power – and the opportunities it will bring for regional businesses, jobs and skills – is compelling.

“But it does present big challenges too. The devolved authorities will have to build their capability quickly to deliver much bigger projects and demonstrate that they are providing value for money.

“Despite its huge potential, devolution would be disastrous if it leads to a patchwork of piecemeal approaches. The devolved authorities must never lose sight of the bigger picture, and ensure that their plans fit in seamlessly to Britain’s national infrastructure.”

It wasn’t all positive though, as Mark Oliver, Managing Director of H+H, doesn’t believe devolution will impact on housebuilding and cited the New Homes Bonus in 2010 which is no longer mentioned.

He said: “Many local authorities are inherently against development of any kind. Often, local politicians are elected on the promise to actually prevent development. On this basis, I don’t think that the Cities and Local Government Devolution Bill will have much impact on housebuilding levels over the next five years.”

The High Speed Rail Bill was also passed yesterday, with Her Majesty confirming that the Government can start building Phase I of HS2.

It ties in with helping to create a northern powerhouse, as faster links to huge cities throughout the country could encourage commuting and more businesses in these areas.

Melanie Leech of the BPF wants to see progress on the construction, encouraging “real growth” throughout the country.

“The investment and upgrade of infrastructure is crucial to unlocking growth, and significant projects such as HS2 hold enormous potential for local areas,” she said.

“It is now crucial that progress on delivering this infrastructure happens quickly and we urge Government to not delay proceedings that could make a real difference to growth outside London.”

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