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Press Release

Budget gives welcome brownfield boost

21 March 2007

‘These measures should boost the recycling of previously used land and buildings. We are glad the Treasury is recognising the environmental benefits of renewing our urban areas and protecting the countryside from unnecessary development.’

This was CPRE’s reaction to the Budget today (Wednesday) which contained a range of other welcome green measures.

Neil Sinden, CPRE’s Policy Director said:

‘Alongside measures to reduce carbon emissions and an increase in the aggregates levy, the brownfield focus in the Budget enhances the Chancellor’s green credentials. Extending tax incentives for brownfield development and reducing the duration of empty property relief from business rates will both help secure the more efficient use of urban land.’

Neil Sinden continued:

‘But disappointingly the Budget fails to address the anomaly of VAT being charged at the full rate of 17.5% on most building repairs and conversions, whereas new build is zero-rated. Equalising VAT rates on new build and refurbishment would give a major incentive to efforts to promote urban regeneration.’

Neil Sinden concluded:

‘The Government’s planning policies have been hugely successful in making better use of brownfield sites for new housing. It is vital that forthcoming reforms reinforce these Budget measures and strengthen the role of the planning system in regenerating brownfield sites, for housing as well as economic development.’

NOTES FOR EDITORS

1. CPRE, the Campaign to Protect Rural England, is a charity which promotes the beauty, tranquillity and diversity of rural England. We advocate positive solutions for the long-term future of the countryside. Founded in 1926, we have 60,000 supporters and a branch in every county. President: Sir Max Hastings. Patron: Her Majesty The Queen.

2. The Budget launches a consultation on improving the effectiveness of tax incentives for cleaning up contaminated land. A separate consultation on the Government’s wider objectives for redeveloping vacant and derelict previously developed land is expected later in the year (para. 3.144). The Budget also announces reforms which reduce the duration of the existing empty property relief to 3 months for all properties and 6 months for industrial and warehouse properties (with exemptions for properties held by charities) (para. 3.140).



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