What the Budget 2021 has done for Green Infrastructure and Levelling Up
The main headlines from the budget concern taxation levels, furlough and pitiful pay rises. However, there are a few points of note for the world of planning and infrastructure, with a particular focus on the green agenda and levelling up. Alongside the Budget government published “Build Back Better”, that sets out plans for infrastructure, skills and innovation and links to the previously published “Ten Point Plan for a Green Industrial Revolution” and “Project Speed”.
In the Budget the Chancellor announced:
· The first UK Infrastructure Bank;
· Offshore wind projects;
· 45 more new Town Deals;
· Freeports;
· Green investments.
The Leeds -based Infrastructure Bank will commence in spring with an initial capitalisation of £12 billion and is expected to support at least £40 billion of infrastructure investment. The Bank will provide financing and advisory support to local authorities and the private sector for new infrastructure projects to help meet government objectives on climate change and regional growth. A separate UK Infrastructure Bank Policy Design document was published alongside the Budget, providing further details.
Funding will be provided for new port infrastructure in Teeside and Humberside to build the next generation of offshore wind farms.
The locations of eight Freeports were confirmed (following on from a recent bidding process). The Freeports will be special economic zones benefitting from: simplified planning regimes; infrastructure funding; cheaper customs; and lower taxes and tax breaks. Government is committed to working with the Scottish, Welsh and Northern Irish administrations to allocate Freeports in those administrations.
In addition to the already announced Sovereign Green Bond a new product for all savers is to be made available to support green projects.
Over £1 billion was earmarked for 45 new Towns Deals. The Chancellor explained that the deals would be “from Castleford to Clay Cross, Rochdale to Rowley Regis and Whitby to Wolverhampton”. The prospectus for a Levelling Up Fund was published alongside the Budget. It sets out how local areas can apply for funding for local infrastructure projects.
22,000 Civil Service roles are being relocated from London. Among them are the roles to be based at the new HM Treasury campus in Darlington.
There is undoubtedly a long way to go to fulfil the governments zero carbon target, but it is encouraging to see the Budget take some positive steps. The Budget also continues to push the governments levelling up agenda, with further regional spending and the establishment of the Infrastructure Bank and new HM Treasury in the north.
Posted on 03/11/2021 by Ortolan