Time for some grown-up decisions on the economy

COMMENT: The political commentators’ verdict appears to be that the grown-ups are back in charge of the UK and its economy. There are certainly some very grown-up decisions to be made ahead of the Autumn Statement on 17 November. It was sensible to delay this statement in order to allow the Office for Budget Responsibility to do its job and the prime minister and chancellor to look again at the size of the challenge (enormous, notwithstanding the “dullness dividend” they may hope to benefit from) and options for tackling it. Departmental ministers are no doubt being asked to redouble their explorations down the back of their various sofas. But we are rightly being well pre-warned that there are hard choices to be made. And with an election at most two years away, they will all be viewed through a laser-focused political lens. How will the chancellor strike the balance between spending cuts and tax rises (with a number of possible options for the latter seemingly already ruled out)? And perhaps most importantly for the property sector, will there be a serious attempt to make progress on some of the deep-seated structural problems we face – which are the underlying causes of the inequalities across the country – or will we instead see a short-term emphasis on making sure people feel a little better the next time they go to the polls? In the zones Probably the best we can hope for is that this is not an either/or, but a both/and question. Michael Gove’s reappointment as secretary of state at the Department for Levelling Up, Housing and Communities means we have a minister in charge who knows the brief and can hit the ground running. Early signals are that he intends to push forward with the agenda set during his previous tenure and will be allowed to do so under new management. The levelling up agenda is alive – and the Levelling Up and Regeneration Bill in its current form continues to make its way through parliament. Less certain is the future of the proposed investment zones. Our view – expressed in the BPF’s own proposal for Town Centre Investment Zones – is that they can be a major catalyst for development and regeneration, and without such a mechanism it is hard to see how the investment proposition can stack up in many parts of the country for the private sector investors to play their full part. Bids for investment zone status were sought at breakneck speed, and it is inevitable therefore that some may not be robust enough to merit taking forward immediately. But I’d urge the government to do three things to make sure that all of that energy and opportunity is not wasted. Time is ticking First is at least to pilot investment zones – to prove the concept in areas where there is genuine local leadership and a strong commitment to public/private partnership. Second is to encourage and enable those areas that put forward bids that are not immediately compelling to do further work to maintain momentum and build the framework and capacity to succeed. Third, recognise that just as private sector capital is essential to delivering levelling up (whether through investment zones or otherwise), so is the ability of the public sector to drive the agenda and deliver the services which create the framework – including, critically, planning. Invest in local authorities to be local agents and deliverers of change. The clock is ticking for the Conservatives, and the Autumn Statement is an opportunity to show that they understand and are committed to driving long-term action and investment as well tackling short-term pressures. We will find out in two weeks’ time. Melanie Leech is chief executive of the British Property Federation