Gove’s back, but will the Treasury budge? 

COMMENT As expected, today’s Autumn Statement was something of a bloodbath. Chancellor Jeremy Hunt certainly pulled no punches, driving down public spending and (predictably) sounding the death knell for investment zones in all but name. Is the kicking of this policy – favoured by many in the industry – into the long grass a portentous sign of what’s to come with this government? If so, it’s a grim outlook for what remains of the Conservative Party’s 2019 flagship policy of levelling up.  Just a few weeks ago, the renaissance of Michael Gove as secretary of state for levelling up, housing and communities was heralded by property industry heavyweights. The seasoned politician is often lauded as an effective agent of change, and many welcomed his return with open arms and high hopes for housebuilding and planning reform.  And – in classic Gove style – his first week didn’t disappoint, with the reinstatement of the 300,000 new homes target slashed under Liz Truss (a policy he opposed previously). A potential sign, or promise, of a pragmatic and sensible approach in the face of recent political hysteria.  Perhaps most surprisingly, Gove saved his ace card for Blackpool, promising a weighty £40m to unlock Nikal’s £300m Blackpool Central regeneration project last week. The funding was Gove’s most major intervention since being reappointed, with the Northern town listed as one of his 20 areas earmarked for “King’s Cross-style regeneration” earlier this year. For many, this material intervention in Blackpool symbolised a sharp-elbowed display of a continued commitment to levelling up, regardless of No.10’s commitment to balancing the books.  But will Gove have to fight for every penny from the Sunak-Hunt duo? If so, this will seriously affect what he is able to deliver as secretary of state. We mustn’t forget Rishi Sunak gave Gove a grand total of £0 towards levelling up when he was chancellor. And despite encouraging opening forays, Gove’s first major speech since being reinstated showed us just how close he is playing his cards to his chest. While reoutlining his preference for beautiful design and a renewed appetite from his department to call-in developments “not aesthetically of high quality”, his hesitancy to say more on the very policy after which his department was recently renamed is not reassuring for those eager to see levelling up become a reality.   So Gove’s back, but at what cost? With investment zones gone and planning reform facing the chopping block too, it would seem Sunak and Hunt are more at odds with Gove than ever. You would be forgiven for assuming Sunak’s reappointment of Gove as levelling up secretary signalled a desire to retain the 2019 flagship policy, but do we really think the new prime minister will be more financially sympathetic than before, given the economic climate we find ourselves in? It would seem that levelling up is being set up for lip service only, alongside a deflated DLUHC. Many have been expecting a resumed effort to push the Levelling Up and Regeneration Bill through parliament – a once-in-a-generation attempt to mitigate the gap between deprivation and wealth in the UK. Today’s news perhaps symbolises otherwise, as we continue to find ourselves in a place of political and policy turmoil. However, today’s Budget did show us one thing – Britain is now in dire need of a levelling-up strategy that can work under No.10’s need to balance the books.  Responsibility falls once again to us in the industry to drive positive change, but it’s not all doom, gloom and uncertainty. We must continue to make the case for a revised and modernised planning system that addresses regional inequalities and urgent housing needs. Instead of hedging our bets on Gove, let’s ensure we keep up vital momentum on the issues that matter so we can create admirable places and spaces, for all. Jamie Holmes is chief executive of Vu.City Image courtesy of London Communications Agency