What's Happening?
The Association for Consultancy and Engineering Group (ACE) has submitted 18 action points to HM Treasury, urging the government to reset the infrastructure environment to promote long-term investment.
The submission, ahead of the Chancellor's Autumn Statement, focuses on planning, devolution, and growth factors. ACE calls for a 30-year infrastructure strategy, digitalization of planning systems, and devolved funding settlements to empower regional authorities. It also recommends land value capture mechanisms and simplification of brownfield development taxes to expedite housing and infrastructure projects.
Why It's Important?
The recommendations aim to address critical issues in the construction and engineering sectors, such as fragmented planning and outdated procurement models. By advocating for strategic partnerships and streamlined processes, ACE seeks to enhance market confidence and drive economic growth. The focus on digitalization and devolution could lead to more efficient project approvals and empower local authorities to lead infrastructure development. These reforms are essential for supporting the UK's infrastructure-led growth strategy and addressing the skills shortage in the engineering sector.
What's Next?
The government is expected to consider ACE's recommendations in the upcoming Autumn Statement and Budget. If implemented, these reforms could lead to significant changes in planning and procurement processes, fostering a more collaborative environment between government and the engineering sector. The emphasis on digital tools and skills development may also attract global expertise and investment, positioning the UK as a leader in sustainable infrastructure development.
Beyond the Headlines
The submission highlights the potential for a circular economy approach to infrastructure, advocating for VAT removal from retrofit projects. This could drive productivity and environmental benefits, aligning with net-zero goals. The focus on fairer risk sharing in public sector contracts may also lead to more equitable partnerships and innovation in project delivery.
