Policy and Politics 6 August 2012

Policy & Politics Update
Property, Transport, Environment and Infrastructure

6th August 2012
Property, planning and regeneration

CABE to step up help with local plans The Commission for Architecture and the Build Environment (CABE) is to partner with the Planning Advisory Service to help councils speed up the process of drawing up local plans. CABE has provided guidance to 123 local authorities in the past five years and the new partnership is intended to boost that number. The National Planning Policy Framework (NPPF) stipulates that local authorities have until March 2013 to align local plans with the new CABE to push local plans forward planning guidelines. (Source: Inside Housing) New incentive for energy efficiency retrofit Proposed changes to the electricity market could see efficiency retrofit work placed on an equal footing with the construction of new power stations, guaranteeing flat-rate income from installations. The measure is one of three options, along with potential supplier obligations and creation of an energy-efficiency feed-in tariff, which the Department for Energy and Climate Change (ECC) will consult on in the autumn. ECC has already set out plans to introduce a capacity market which would see producers paid for simply possessing capacity to produce electricity. (Source: Building) New Chief Construction Advisor appointed Former President of the Institution of Civil Engineers and executive director at Nichols Group, Peter Hansford, has been appointed as the new Chief Construction Advisor to the Government. Mr Hansford, who will succeed Paul Morrell OBE in December 2012, is tasked with bringing his wealth of experience in the construction sector to bear on the transition to a low carbon economy. Mr Hansford will act as an independent advisor to the Department of Business, Innovation and Skills and chair the Government Construction Board and Green Construction Board. (Source: BIS) 5,000 construction insolvencies since autumn 2010 More than 5,000 construction firms have declared insolvency since autumn 2010, research published by PwC on 30 July has revealed. Despite a 15.5 per cent drop in construction insolvencies in the second quarter of 2012, a total of 5,527 companies have become insolvent since September 2010, 30 per cent of which were general construction and civil engineering firms, with architectural, building, water project, painting, roofing and plastering firms accounting for the remainder. Construction orders struggle to recover in July Following a two-and-a-half-year low in construction orders in June, commercial output drove a small growth in orders in July. The latest data from the Markit/CIPS Construction Purchasing Managers Index, published on 2 August, showed that July produced an index score of 50.9, above the 50.0 no-change level. However, despite growth in the commercial sub-sector, housebuilding and civil engineering activity continued to decline. (Source: Markit/CIPS) House prices slip a fourth time House prices have declined for a fourth time in five months, according to data published by Nationwide on 1 August. The figures indicate that the rate of price growth has fallen from -1.5 per cent in June to -2.6 per cent, the lowest since August 2009. The price of a typical home was 164,389. (Source: Nationwide)
Consultation on Welsh building regs launched On 31 July, the Welsh Government announced a consultation on proposed changes to building regulations which aim to make standards for new and existing domestic and non-domestic buildings simpler and greener. The changes will contribute towards the Governments target of a 55 per cent improvement in energy efficiency performance for new dwellings by 2013, as well as directly benefitting green suppliers and installers. (Source: Welsh Government) Scotland three years ahead on PFI The UK Government is three years behind the Scottish Government in developing an effective PFI model, according to Alex Neil MSP, Cabinet Secretary for Infrastructure and Capital Investment in the Scottish Government. In an interview with Building magazine, Mr Neil claimed that Scotlands PFI-style non-profit distributing model (NPD) was a more credible way to drive private sector investment. Scotland is currently undertaking a programme of investment totalling 2.5bn in NPD projects. (Source: Building)
Transport
MPs propose compensation over Heathrow expansion A group of Conservative MPs has put forward proposals to financially compensate residents living near to Heathrow Airport to help defuse local opposition to a third runway. The Free Enterprise Group, made up of nearly 40 MPs and believed to be closely linked to the Rt Hon George Osborne MP, Chancellor of the Exchequer, is reported to advocate compensation payments of up to 40,000 for those most affected by the increase in noise and disruption. The Government has indicated that it will not sanction a third runway during this Parliament. (Source: The Telegraph) 1.2bn boost for Sheffield roads A private finance initiative could see Sheffield City Council receive 1.2 billion of Government funding for major road upgrades over a 25 year period. The contract includes the maintenance of the Citys 1,180 miles of road, 2,050 miles of footway and 68,000 street lights. (Source: DfT) Cameras reduce road deaths in Scotland Speed and traffic light cameras on Scottish roads have reduced death by two thirds, the Transport Research Laboratory reported last week. Measured in three-year periods on roads before and after the installation of road safety cameras, the number of deaths fell from 337 to 108. The number of drivers breaking the speed limit at sites where cameras were installed fell from 45 per cent to 14 per cent. (Source: TRL)
Energy and environment

Lloyds to invest 1bn in infrastructure and renewables Lloyds Banking Group has pledged to invest 1 billion in infrastructure projects, including 333 million in renewable energy, as part of the Governments Infrastructure Plan. In a statement on 30 July, Lloyds managing director and global head of project finance, Chris Heathcote, said that Lloyds was considering up to nine infrastructure projects, including ports and highways; three conventional power plants; and up to 12 clean energy projects, including offshore wind, solar power and biomass plants. (Source: Business Green) Wind and solar cheapest by 2030 A new report by Australias Bureau of Resources and Energy Economics has indicated that wind and solar power will be the cheapest power forms by 2030. Across 40 technologies assessed, photovoltaics and onshore wind are predicted to have the lowest levelised cost of electricity by 2030. It is projected that the relative cost of fossil fuel-based electricity will rise as a result of carbon pricing and projected market fuel prices, while biomass and biogas electricity will remain competitive forms up to 2050. (Source: New Energy World Network)
Wind turbines make it to Olympic Park Following criticism of the Olympic Parks green credentials, the Olympic Delivery Authority (ODA) last week revealed that seven wind turbines designed by British manufacturer, Quiet Revolution, are operational in the Stratford park. Despite the absence of the promised giant wind turbine, seven vertical axis wind turbines, designed to harness wind more effectively in urban environments, have been installed to power streetlights at a cost of 40,000 each. The ODA hopes the turbines will help it to exceed its 50 per cent target to reduce the carbon footprint of the construction of the Olympic Park. (Source: Business Green) Sainsburys steps up on solar Sainsburys has installed 69,500 photovoltaic panels across 169 stores in the UK, making the supermarket the largest solar panel operator in Europe. The panels reduce Sainsburys CO2 emissions by an estimated 6,800 tonnes per year, making significant ground on its target of reducing operational carbon emissions by 65 per cent between 2005 and 2020. (Source: edie) Marine Energy Park launched on Scottish coast On 30 July, ECC confirmed the launch of a Marine Energy Park at the Penland Firth and Orkney Waters in the north of Scotland. The Park will incorporate the European Marine Energy Centre, which will provide open sea test facilities for wave and tidal energy converters and aims to attract developers from across the world. UK wave and tidal energy has the potential to generate 27 gigawatts of power by 2050, equivalent to five coalfired power stations. (Source: DECC) Strategy for smart grids in Scotland The Scottish Government has launched a strategy which aims to capitalise on Scottish expertise in smart grid technology. The technology, which makes the generation, transmission and use of energy more efficient, could help create 12,000 jobs in the sector by 2020 as well as establish Scotland as a leading international provider. Scotland is already home to a number of leading technology research centres, including the Hydrogen Office, the Power Networks Demonstration Centre and the Electrical Power System Protection Laboratory. (Source: SDI)
Other news
Small businesses to advise on prompt payment On 2 August, the Department for Business, Innovation and Skills (BIS) confirmed that it will collaborate with small business representative bodies to develop measures to improve the supply chain cashflow. Members of the Small Business Economic Forum will work with BIS to devise measures to prevent late payments, such as expanding the Prompt Payment Code and encouraging the agreement of payment terms before delivering orders. (Source: BIS) EH status for Great Western main line structures English Heritage has announced that the Department for Culture, Media and Sport has listed 35 new railway structures and upgraded seven others on the Great Western main line. Stretching from London Paddington to Bristol Temple Meads, the main lines Grade II listed structures now include the Wiltshire Box Tunnel, the Roman Road Bridge in Swindon and the River Avon Viaduct. (Source: English Heritage)
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Policy & Politics Update

Property, Transport, Environment and Infrastructure

Property, planning and regeneration

Energy and environment

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