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British Property Federation unveils five-point plan ahead of Autumn Statement

Ahead of next Tuesday’s Autumn Statement the British Property Federation has outlined a five-point plan aimed at harnessing the expertise of the property industry to promote growth and investment in the UK economy.

With financial turmoil in Europe and the UK economy flat-lining, the BPF has set out a series of zero and low-cost measures that would free the property industry to go for growth. The BPF believes those that would involve a cost to the Exchequer would repay the expenditure through the creation of jobs and investment in the UK economy.

Relatively modest changes in the Autumn Statement could see the property industry increase its contribution to the UK. Recent data shows the commercial property industry employs more than 800,000 people, is larger than the banking industry and is worth £46 billion to UK GDP or 3.5% of the UK’s GVA.

The five recommendations:

1) Tax Increment Financing (TIF) - opportunities to deliver badly-needed infrastructure and unlock development in England are being missed due to delays and confusion in introducing TIF. Proposals are currently tied to the Local Government Resource Review and therefore delayed until 2013 at the earliest. The BPF has urged government to introduce TIF more quickly to kick-start important regeneration schemes that are currently stalled;

2) Empty property rates - at a time when shop vacancies are at an all time high, struggling businesses and retailers are being doubly punished by a tax on empty, unproductive property. This denies them resources that could be used more productively, for example to refurbish or modernise assets or to create jobs and promote economic growth through construction activity;

3) Reit reform – while the government has committed to welcome reform of the reit regime, the BPF believes that further changes could help widen the investor base in property, and particularly to encourage institutions such as pension funds to invest in new housing. The BPF also supports the creation of mortgage reits, something that could help banks to deal with their overhang of property debt, and for the requirement for reits to be listed on a stock exchange to be relaxed;

4) The assault on tax relief for capital expenditure should be suspended at a time when it’s important to encourage business to invest;

5) Simplification or a more coherent climate change policy framework that is more sensitive to the challenges of tenanted commercial property.

Liz Peace, chief executive of the British Property Federation, said: “With little money in government coffers the Autumn Statement must look at ways it can deregulate to promote growth and job creation, and while the property industry already plays a vital role in the UK economy, its contribution could be even greater with just a few minor policy changes.

“We are particularly frustrated that TIF proposals are being held up until 2013 when Scotland has already announced five schemes. It’s vital that TIF is made available now to help unlock development and create jobs and economic growth when it’s most needed.”

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Patrick Clift, Media and Public Affairs Manager, on 07834 439 505 or at pclift@bpf.org.uk

Paul Sweeney, Media Officer, on 07841 732 194 or at psweeney@bpf.org.uk

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