News From Other Organisations: What impact has the pre-budget speech had upon Sustainable Communities work?

The "big" announcement on funding for local government went off fairly quietly. The Local Government Association Chairman Sir Sandy Bruce-Lockhart said:

"The deal worth £1.1billion is better than was expected but still leaves many councils having to face tough choices between council tax increases and cutting services".

Of most immediate note were Mr Brown's announcements on housing:

• A further increase in home ownership - shared equity schemes, funded by banks, building societies and house builders, are set to increase, providing new home buyers with the opportunity to gradually buy shares in their new home.
• A Local Planning Gain supplement looks like it could unlock new funds for "infrastructure" such as schools, hospitals and community facilities in areas where significant housing growth is expected. What's interesting about this announcement is that this local tax on development will be expected to fund local facilities rather than fund the general tax "take" – an issue that has proved a sticking point with the Treasury in the past.
• Alongside new investment in the extension of home ownership, the Chancellor announced further investment in pilot projects to encourage local authorities to provide derelict land for new housing for rent.
• Perhaps good news for hard-pressed housing markets in the South West is the announcement in the statement that the Treasury is to tighten up the misuse of SIP'’s (Self Invested Personal Pensions) to buy second homes. Concern that the new SIPP regime would encourage a new wave of house buying in the rural South West may now be reduced.

The last announcement in the report concerned young people and youth services.

• The Treasury has been in discussion with some of the country's biggest firms to establish a new £100m fund for volunteering and gap year work.
• Support for wider youth services was also announced and to get things started the Chancellor announced that the government will provide funds for every local authority to establish a Young People's Fund (average of £500k per authority). The role of the voluntary and community sector in this field will be vital and worthy of note is the requirement that that this fund should be run by and for young people – Youth Councils and Forums take note!

Links:

BBC - BBC news story

Local Government Association - Local Government Association website

Treasury pre-budget microsite - Pre-Budget microsite

Housing Corporation South West - The Housing Corporation South West website

Youth Green Paper - Department of Education and Skills website