Contractors and suppliers to the housing, transport and infrastructure sector were boosted by news that there would be an increase in Government spending in key areas.
The standout items of interest for our bid response clients were as follows:
- £500 million added to the Housing Infrastructure Fund to unlock 650,000 new homes
- Confirmation the borrowing cap on local authorities will be scrapped
- Strategic partnerships with nine housing associations to deliver 13,000 homes
- Up to £1 billion of British Business Bank Guarantees to support the revival of SME housebuilders
- Loosening of Permitted Development Rights for office-to-residential conversions
- £75 million from the Home Building Fund for St Modwen plc, to fund infrastructure to build over 13,000 new homes
- The abolition of PFI and PF2 contracts with all existing contracts to be honoured
TRANSPORT AND INFRASTRUCTURE
- High streets to benefit from a £675 million fund to develop town centre infrastructure.
- £70 million towards developing the national element of the Defence and National Rehabilitation Centre
- £100,000 to developing proposals for Eden Project North in Morecambe
- £37 million to support the development of Northern Powerhouse Rail
- £240 million to the six ‘Metro Mayors’ for substantial transport investment in their local areas
- Local authorities will receive £420 million as a pothole fund, plus £150 million for local traffic hotspot improvements
Additionally, it was announced that fuel duty remains frozen for the ninth year in succession. This should ensure greater stability for contractors and suppliers with significant transport and freight costs.
View the full budget document here