Autumn statement 2023: key measures

November 23, 2023

Local Government Lawyer identifies some of the key measures affecting local government and connected sectors from Chancellor of the Exchequer Jeremy Hunt's Autumn Statement 2023.

Source: Autumn Statement 2023, published by HM Treasury on 17 November 2023.

Planning

Planning fees - The Government will introduce new premium planning services across England with guaranteed accelerated decision dates for major applications and fee refunds wherever these are not met. “These services will improve the existing patchwork approach of Planning Performance Agreements,” the Government said.
Permitted development rights - The Government is seeking to boost the housing supply by consulting on the introduction of a new permitted development right to enable one house to be converted into two homes, providing the facade is unchanged. This will be implemented in 2024 following consultation early in the New Year.
It will also consult on introducing new permitted development rights to end the blanket restriction on heat pumps one metre from a property boundary in England.
In addition, the government will look to accelerate the expansion of electric vehicle (EV) charging infrastructure and will consult on amending the National Planning Policy Framework to ensure the planning system prioritises the rollout of EV charge points, including EV charging hubs.
Nutrient Neutrality - The Government will make £110 million available through the Local Nutrient Mitigation Fund to support local planning authorities affected by nutrient neutrality rules to deliver high-quality local nutrient offsetting schemes, unlocking up to 40,000 homes over the next five years.
Infrastructure projects - The Government will progress the National Infrastructure Commission’s (NIC) April recommendations on planning by delivering reforms to return the Nationally Significant Infrastructure Project regime to the two and a half year average consenting time achieved in 2012.

Investment Zones

'Refocussed' investment zones - The Government launched its 'refocussed' investment zones programme in its Spring Budget 2023 but said it is now "going further" by extending the programme from five to ten years, "which will double the envelope of funding and tax reliefs available in each Investment Zone from £80 million to £160 million," to provide greater certainty to investors.
The Government is also extending the duration of the tax reliefs available in Freeports from five to ten years. A new £150 million Investment Opportunity Fund, which will be available over five years, will also be created.
New zones - Three further investment zones focused on advanced manufacturing will now be established in the East Midlands, West Midlands and Greater Manchester. The East Midlands zone will also focus on green energy alongside advanced manufacturing. The three zones will collectively leverage around £3.4 billion in private investment.
Two new Welsh investment zones are planned for the Cardiff and Newport area and the Wrexham and Flintshire area. The government has now confirmed details of 6 of 13 Investment Zones in the UK and will work with local partners with the aim of confirming details of all Investment Zones by summer 2024.

Housing

Local housing allowance - The government will raise Local Housing Allowance rates to the 30th percentile of local market rents in April 2024. This will benefit 1.6 million low-income households, who will be around £800 a year better off on average in 2024-25.
Investing - The Government will invest £32m to "bust" the planning backlog. It said funding will also accelerate the delivery of new high-quality housing in Cambridge, Leeds and London. As part of this, the Government will support the Cambridge Delivery Group to drive Cambridge's long-term vision by exploring the case for a development corporation.

Devolution

Plans for more devolution - The Government has agreed with local partners a Memorandum of Understanding outlining the approach to the single funding settlements, which will be implemented at the next Spending Review for the West Midlands and Greater Manchester Combined Authorities.
More devolved powers - The Government is also publishing a new 'Level 4' of the devolution framework. Devolved institutions with a directly elected leader that meet eligibility requirements will be able to draw down from this framework, which delivers deeper powers alongside new scrutiny expectations. The powers include new levers over local transport, reflecting the substantial progress made towards the National Infrastructure Commission's recommendation to devolve local transport powers and funding to local authorities.
New devolution deals - The Government also announced four new deals and an intention to expand Level 2 devolution to eligible councils across England that represent a whole county or functional economic area. This includes new Level 3 deals with Greater Lincolnshire, and Hull and East Yorkshire, and Level 2, non‑mayoral, deals with Cornwall and Lancashire. Combined, these new deals and the extended Level 2 offer could increase the proportion of people in England benefiting from devolved powers to over two-thirds.
North East deal - The Government has already agreed to negotiate a further trailblazer devolution deal with the North East, and discussions have now commenced with a view to finalising a deal in spring 2024. The deal will empower local leaders to develop existing and potential industrial strengths across the region, from creative industries to advanced manufacturing.

Levelling up funding

Regeneration funding - over £50 million to support regeneration in places across the UK: Bolsover, the Isles of Scilly, Warrington, North Norfolk, Eden and Monmouthshire.
Scottish levelling up funding - £80 million for the expansion of the Levelling Up Partnerships programme to Scotland, for Na h-Eileanan an Iar, Argyll and Bute, Dundee, and the Scottish Borders, and will consider how to extend the programme further.

Adam Carey