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The newly elected Labour government has outlined several economic policies that will significantly impact businesses and property development in the UK.
Here are the key changes to expect:
Planning system reform
Labour plans to overhaul the planning regime to streamline infrastructure and housing development. This could potentially speed up approval processes and increase opportunities for property developers. The cost of materials has recently significantly impacted the speed at which properties can be developed and deterred some house builders so Labour will need to incentivise developers to build bearing in mind the cost of labour and materials.
Business rates reform
The party has committed to replacing the current business rates system in England with a fairer alternative. This change aims to level the playing field between high street and online businesses, incentivise investment, and support entrepreneurship. This may well bring life back to the high street but at the same time impact e-commerce which has not been impacted by a tax like business rates.
Increased infrastructure investment
Labour intends to develop a 10-year infrastructure strategy, which could create new opportunities for commercial property development and construction. Businesses should connect with tender and procurement networks to ensure they are ahead of the competition in securing new delivery contracts.
National wealth fund
The creation of a £7.3 billion national wealth fund is proposed to support growth, clean energy, and attract private investment. This could provide new funding avenues for property development projects, particularly those focused on sustainability.
Pension fund reforms
Labour plans to encourage pension funds to increase investment in UK markets. This could potentially boost available capital for property development and investment.
Corporation tax stability
The party has pledged to cap corporation tax at 25% for the entire parliament, providing businesses with tax certainty.
Full expensing for capital investment
Labour will retain this policy, which could benefit businesses investing in property and equipment.
Industrial strategy
The proposed new industrial strategy may impact property development in specific sectors, such as financial services, automotive, and life sciences.
These changes suggest a more active role for government in shaping markets and partnering with businesses. While they offer potential opportunities for growth and investment in the property sector, developers and businesses should prepare for a shifting regulatory landscape and new investment dynamics.
If you are considering a new project FG Solicitors can assist you in the planning and delivery of such a project, contact Harshinder Hundal at FG Solicitors today on 0808 172 93 22 or complete our quick contact form for a no obligation discussion!
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This update is for general guidance only and advice should be taken in relation to a particular set of circumstances.
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