Association Calls On The Chancellor To Provide For More Housebuilding.

In advance of the Pre-Budget Report on 5 December, the Construction Products Association has written to the Chancellor urging him to respond positively to the Barker Report on housing supply which pointed to the need for increased levels of both social and private housing provision. At the same time, the Association wants to see additional incentives to encourage the take up of brownfield sites and for housing to be built to higher levels of sustainability. In its submission, the Association's President, Roy Harrison has told the Chancellor: 'The Barker Review, which was commissioned by the Treasury, highlights the adverse effects on the economy of a consistent undersupply of housing in this country. We have been promised a full Government response by the end of the year, and I would urge you to respond positively to Kate Barker's recommendations, both by financial provision for higher levels of social housing, and through a more effective planning system which will release land where it is needed for additional private housing.

'Such developments must, however, recognise the importance of sustainability and we are, therefore, proposing that you: Allow owners of brownfield land to offset the upfront cost of cleaning-up contaminated sites against their Corporation Tax liability. Indicate that the Government is minded to introduce a time limited reduction in Council Tax for those who buy new private sector homes which meet the requirements of the proposed Code for Sustainable Buildings."

Footnotes The Association believes that the provision of a time limited reduction in Council Tax liability would provide an incentive for prospective purchasers to purchase property built to the Code's standards and proposes that such properties should be placed in one Council Tax band lower for the first 3 years of its occupation. In its Pre-Budget Submission, the Association also called on the Chancellor to: Avoid further increases in the fiscal burden on business through new taxes or increases in existing. ones Continue to freeze fuel duty rates in view of the continuing high level of oil prices. Reform the scope of the Climate Change Levy so that those companies participating in the EU Emissions Trading Scheme are exempt from the levy. Extend the scope of the levy so that a wider range of companies not participating in the EU ETS can be part of a Climate Change Agreement. Introduce an annual allowance rate of 35% for all capital investment. Announce a comprehensive review of the environmental impact of the Aggregates Tax and its economic consequences on the industry. Introduce a grant scheme which for the next 5 years offers householders [pounds sterling]500 to replace open flue pre-1995 central heating boilers with new high efficiency condensing boilers.

The Construction Products Association:

The Construction Products Association represents the UK's manufacturers and suppliers of construction products, components and fittings. The Association acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of [pounds sterling]40 billion and accounts for 40% of total construction output. Please Note: The views expressed by our contributors are not necessarily those of CJ Connect, Contract Journal or Mondaq Ltd.

Construction Products Association

26 Store Street

London

WC1E 7BT

UNITED KINGDOM

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