2015 cushmanwakefield.com
INTRODUCTION CONTENTS An overview of the parties key points in an easily digestible format It s less than 24 hours until voting begins for one of the closest elections the UK has seen in 40 years. With a raft of information being sent out around party policies we thought it would be timely to condense this into an easily digestible format to compare the seven main party pledges in seven key areas that affect business and real estate: Infrastructure, Housing and Planning, Devolution, Referendum, Business Rates, Mansion Tax and Non-Domiciled Status. INFRASTRUCTURE HOUSING AND PLANNING DEVOLUTION REFERENDUM BUSINESS RATES MANSION TAX NON-DOMICILED STATUS HOME
INFRASTRUCTURE infastructure PARTY AIRPORTS RAILWAY ROADS OTHER Conservatives Respond to Airport Commission s final report 38 bn spend in next 5 years inc: Electrification of railway extend programme to East Anglia and the South West. As well as HS2&3, complete London east-west Crossrail. Crossrail 2 - London, Surrey and Herts. Freeze rail fares introduce smart ticketing and part-time season tickets. Wi-Fi and improved phone signal on new trains. Invest 500 mn over next 5 years to ensure almost every car and van is zero emission by 2050. Invest 200 mn to make cycling safer. Invest 15 bn in roads, inc 6bn on northern roads, dualling and widening A1 north of Newcastle and first new trans-pennine road in over 40 years. Labour Liberal Democrats Swift decision on expanding airport capacity in London and the South East after Davies report Balance need for growth and environmental impact. Airport infrastructure for a modern and open economy. No airport expansions or Thames Estuary airport ensuring no net increase in runways across the UK. Support HS2 but keep costs down Improve and expand rail links across North to boost regional economy. 10-year plan to electrify majority of the UK rail network Reopen smaller stations, restore twin-track lines and proceed with HS2 as first stage of a high-speed rail network to Scotland. Private sector investment in freight terminals and railconnected distribution parks. Transport for the North strategy focus Improved links to the South West, complete East-West rail, ensure London s transport infrastructure is improved Consider trams alongside other options UKIP Consider Davies report and re-open Manston airport. Stop the development of HS2 Green Party SNP Plaid Cymru Connect Scotland to HS2 High speed connection between Glasgow, Edinburgh and the north of England as part of any high-speed rail network Support the electrification of railways in Wales, with the aim of all major lines being electrified by 2034 and the electrification of the North Wales Main Line in the next Control Period. Long term investment in roads Address neglect of local roads and promote cycling. Focus on Transport for the North strategy Improved links to the South West Complete East-West rail Ensure London s transport infrastructure is improved Improve transport and communication links across north. Improve A55, construct a third Menai Bridge Improve roads between north and south to improve access to all parts of Wales. Set up independent National Infrastructure Commission to assess how best to meet Britain s infrastructure needs. Monitor implementation and hold government to account. Prioritise investment in flood prevention. Infrastructure investment to continue Stimulate min 100 bn private investment in low-carbon energy infrastructure by 2020. Decarbonisation target of 50 100g of CO2 per kwh for power sector by 2030. Ensure electricity and transmission costs between consumers and generators are fair More European electricity interconnection capacity. Onshore wind Improved flood resilience infrastructure Free nationwide retrofit insulation programme focusing where fuel poverty is worse. Aim for the Passivhaus ultra low-energy refurbishment standard by 2020. Maximise renewables generation, in particular offshore. Progress the islands interconnector Reform of the transmission charging regime Commit 1% extra of UK GDP to infrastructure investment each year, securing 800m to invest in Welsh infrastructure projects Ports and freight strategy for Wales Local welsh power grids Ease access to the National Grid for renewable users Support a moratorium on fracking and other forms of unconventional gas Oppose opencast mining and the building of nuclear power plants in new locations.
HOUSING AND PLANNING PARTY LAND/NEW BUILD AFFORDABLE HOUSING/HOUSING ASSOCIATION Conservatives 90% of suitable brownfield sites to have planning for housing by 2020. Support for locally-led garden cities and towns. 275,000 affordable homes to be built by 2020. Brownfield sites to be developed into 95,000 new homes. Custom-built and self-built homes to double by 2020 Take forward a new Right to Build, requiring councils to allocate land to local people. 1.3 mn families to be offered the right to buy (RTB). London discount capped at c. 102,700 and 77,000 elsewhere RTB funded by local authorities managing assets more efficiently. 200,000 new Starter Homes to be built for first-time buyers under 40 at 20% below the market price. EU migrants will only be eligible for a council house if living in area for at least four years. RENTING Requirement for all landlords to check the immigration status of their tenants. OTHER Business Improvement Districts and other forms of business-led collaboration on high streets more say to local traders Help to Buy mechanism to cover a further 120,000 homes. Help to Buy mortgage until 2017 and Help to Buy equity loan until 2020. Remove automatic entitlement held by 18-21 year-olds on Jobseeker s Allowance to housing benefit. Labour 200,000 new homes to be delivered each year by 2020 Focus on building more affordable homes New use it or lose it powers to for LA s to encourage developers to build Power to prioritise first time buyers on new homes. New generation of Garden Cities. New Future Homes Fund to invest in housing supply. Back small builders utilising the Help to Build scheme. Liberal Democrats Commission house building to achieve 300,000 homes a year target. Brownfield and town centre sites to be prioritised. 10 new Garden Cities. Homes and Communities Agency, and LA s, required to develop unwanted public sector land for homes. Local Authorities to be given powers to intervene on empty homes, including right to increase council tax on long term empty properties. 200,000 low income households will have their properties upgraded each year Make three-year tenancies in the private rented sector the norm and limit rent increases A ban on unfair letting agent fees. A national register to record private landlords. Local Authorities will be encouraged to renegotiate rent with landlords for tenants claiming Housing Benefit, retaining any savings made. Energy efficiency Interest free loans would be provided for households to make energy home improvements. Local Authorities required to establish a register for local people interested in self-builds and for plans to be set out on how to meet this demand. Rent to Own - rent payments go towards owning a stake in the property. Introduce family friendly (multi-year) tenancy agreements with annual indexation linked to CPI. Permit tenants to withhold rent or have it refunded in certain circumstances. Help to Rent scheme - introduced to support first time tenants under 30 years old with their deposits Review compulsory Purchase legislation. Tackle Local Authorities whose decisions contravene local plans. Developers prohibited from appealing against planning decisions that are in line with the local plan. Concept of landscape scale planning to promote walking, cycling, car sharing and public transport Complete registration of all substantial land and property holdings in England and Wales by 2020. Development rights for converting offices to resi to cease. CUSHMAN & WAKEFIELD 2
HOUSING AND PLANNING PARTY LAND/NEW BUILD AFFORDABLE HOUSING/HOUSING ASSOCIATION UKIP 1mn homes built on brownfield by 2025. Unwanted public land released for affordable homes. Smaller developments in rural areas to extend villages LA s to require a proportion of self-build plots in all large developments Financial incentives to developers to utilise brownfields Establish National Brownfield Sites Register. Large developments can be overturned by 5% of local electors Reinvest revenue from RTB into local housing foreign nationals not eligible for RTB and HTB unless they have served in Her Majesty s Armed Forces. Green Party Encourage the development of brownfield sites Provide 500,000 social rented homes to high sustainability standards. Abolish the Bedroom Tax. Align Housing Benefit to local average market rents and review Shared Accommodation Rate. Redefine affordable renting to reflect local incomes. SNP Plaid Cymru Additional capital investment to expand house-building in Scotland, inc affordable homes for purchase or rent. 30m Help to Buy Scotland funding smaller housing 70m funding to help first time buyers Build 4 Wales to look at better use for disused land and buildings for housing. Target of 100,000 UK affordable homes. Savings from Housing Benefit to fund new council housing as well as improving current stock. Build 4 Wales to provide support to LA s and social landlords RENTING Five-year tenancy agreements abolish letting fees and insurance-based deposit. Increase in rents to be capped to CPI. A Living Rent Commission to consider if local rents should be aligned to local average incomes. Mandatory licensing scheme for landlords. According to their manifesto, the SNP would vote for a mansion tax. New rent controls in private rented sector OTHER Stamp Duty exemptions for properties worth under 250k Mortgages will be permitted to be inheritable. Commercial properties outside of town centres given greater planning flexibility to convert to residential. Replace National Planning Policy Framework with guidelines to prioritise brownfields and protect greenbelt. Merge Planning and Building Control departments in LA s. Traveller sites without permission will be illegal. Develop across England and Wales to ease the South East Diversify building sector by breaking up larger companies Bank of England power to limit mortgages relative to property value and borrower s income Scrap Help to Buy and Right to Buy Phase out Stamp Duty & Land Tax consider Land Value Tax Reduce VAT on housing repairs / renovations to 5%. Right of appeal for development not compliant with plan Improve transparency in the land market Transfer public land into the control of local land trusts; LA s to have local carbon plan End rough sleeping, LA s duty to prevent it Vote for the abolition of non-dom status. Support first time buyers 200 per cent council tax will be charged on second homes. Green New Deal to support more energy efficient homes VAT would be reduced on certified housing repairs Reform current planning to prioritise local need and benefit, sustainability and impact on the Welsh language Seek a preventative approach to homelessness
DEVOLUTION PARTY ENGLAND SCOTLAND WALES OTHER Conservatives Legislation for only England or England and Wales will be considered by a Committee proportionate to party strength in England or England and Wales. English legislation; no bill relating only to England would become law without approval through a Grand Committee of all English, or all English & Welsh MPs. In Cambridgeshire, Greater Manchester and Cheshire East, pilot local councils to retain 100% growth in business rates Scotland Bill: implement the Smith Commission. Over 50% of Scottish Parliament s budget would be funded from revenues raised in Scotland and significant new welfare powers Legislation for only England or England and Wales will be considered by a Committee proportionate to party strength in England or England and Wales. Devolve Welsh Assembly control over own affairs. Funding floor to protect Welsh relative funding and provide certainty for future of Welsh Government Northern Ireland: to implement Stormont House Agreement to devolve function more effectively Work with Northern Ireland Executive to implement commitments to rebalance the economy and complete the devolution of Corporation Tax powers to the Assembly. Labour English Devolution Act: transfer 30bn funding to city and county regions, New powers over economic development, skills, employment, housing, and business support City and county regions to retain 100% business rates raised from growth in their areae. Home Rule Bill to give extra powers to Scotland over tax, welfare and jobs. Rates of income tax would be set in Scotland. Welsh devolution given the same statutory basis as Scottish, powers are devolved unless specifically reversed Welsh legislature is a permanent feature of the constitutional arrangements. Take forward Silk Commission: power to Wales over elections, transport and energy A Constitutional Convention to address devolution. Replace House of Lords with an elected Senate of the Nations and Regions, to represent all UK parties Implement the Smith Agreement in full. Economic pact between the UK and Northern Ireland Executive focused on stimulating jobs and growth Liberal Democrats English MPs will be given a separate say on laws that only affect England on a proportional basis. Introduction of Devolution on Demand, enabling greater devolution of powers from Westminster to Councils working together. Smith Commission implemented Powers held at Westminster and Holyrood to be transferred to local government where appropriate. Scottish Parliament to raise in tax more than half of what it spends in its budget. Implement St David s Day announcement, devolving powers over energy, ports, local elections and broadcasting. Deliver proper Home Rule for Wales and A Welsh Parliament though Silk Part 1 and 2 proposals. Address underfunding and seek to increase the Welsh block grant to an equitable level Deliver Home Rule for a strong, federal UK. Create a UK Constitutional Convention from wide range of representatives to produce constitution in two years. UKIP No references to devolution in manifesto. Green Party Increase real power at all levels, from local councils up to the Welsh Assembly Increase the Assembly members and push for the National Assembly to become a Parliament with powers equal to those in Scotland. Favour greater devolution to tax-raising powers for Local Authorities, with this put beyond future Whitehall revision by giving formal constitutional protection to local democracy. Any constitutional changes should be subject to referendums SNP Support independence, and influence SNP votes at Westminster to ensure referendum promises are delivered. Demand Smith Commission delivered quickly Scottish Parliament to have financial responsibility. Prioritise employment, inc minimum wage, welfare, business taxes, NI and equality policy. Devolution all food levies; the Work Programme and Work Choice; and the Crown Estate. Plaid Cymru Full transfer of the powers recommended in both reports by the Commission on Devolution in Wales as quickly as possible. Prepare further devolution by developing a Welsh employment and benefits system that supports individuals to find suitable jobs. CUSHMAN & WAKEFIELD 2 CUSHMAN & WAKEFIELD 5
REFERENDUM, BUSINESS RATES, MANSION TAX & NON DOMICILED STATUS PARTY REFERENDUM BUSINESS RATES MANSION TAX NON DOMICILED STATUS Conservatives Deliver European in-out referendum by end of 2017. Increase business rates retail discount to 1,500. By 2017 Business Rates should reflect structure of the economy and provide clearer billing, better information sharing and a more efficient appeal system. Councils to keep higher proportion of the business rates revenue that is generated in their area. There are no references to the mansion tax in their manifesto. Labour Do not plan to hold an in/out referendum and support continued membership of the European Union. Would legislate for a lock that guarantees that there can be no transfer of powers from Britain to the European Union without the consent of the British public through an in/out referendum. Will cut and then freeze business rates for over 1.5 million smaller business properties. Mansion Tax on properties worth over 2 million, to help fund the NHS further. Mansion Tax threshold would rise in line with high value house prices Lower incomes would be protected with a right to defer the charge until the property changes hands. Abolish non-dom status so that all those who make the UK their home pay tax in the same way as the rest of us. Liberal Democrats Will hold an In/Out referendum when there is next any Treaty change involving a material transfer of sovereignty from the UK to the EU. Would campaign for the UK to remain in the European Union when that referendum comes. Prioritise reforms that lessen the burden on smaller businesses, ensure high streets remain competitive and promote more efficient use of land. Land Value Tax to replace Business Rates. Review to consider implementation of LVT, as well as interim reforms including Site Value Rating Introduce a UK-wide High Value Property Levy on residential properties worth over 2 million. It would have a banded structure, like Council Tax Restrict access to non-domiciled status, increasing the charges paid to adopt this status and ending the ability to inherit it. UKIP British in/out referendum as soon as possible. Only British citizens would be allowed to vote. Vote on two options: 1. Repeal the European Communities Act 1972 and leave immediately2. Notify European Council that the UK has decided to leave the EU in two years time (preferred option as sensible, orderly exit). National referendum every two years on the issues of greatest importance. If a business has only one property and the RV is less than 50,000, the business would get 20% rate relief (approx. 90% of businesses). If the business has more than one property, the 20% rate relief would still apply, provided the total RV of all properties is less than 50,000. Other existing business rate reliefs would not be affected. UKIP would not support the introduction of a Mansion Tax. There are no references to non-domiciled status in their manifesto. Green Party Support in-out referendum on EU. If called for, introduce referendums on local government decisions by 20% of the local electorate, and recall referendums on MPs and other representatives if 20% of electors request it. Support Welsh for degree of autonomy. Local authorities to set local business rates, and then distribute the whole of Council Tax receipts and Business Rate receipts between local authorities on a basis of an Independent Commission. The Green Party would introduce a wealth tax of 2 per cent on those with assets more than 3 million. Abolish the rule that allows non-domiciled residents not to pay tax on foreign income. SNP Oppose membership of the European Union. If go ahead, ensure that no constituent part of the UK can be taken out of the EU against its will. Propose that that unless England, Scotland, Wales and Northern Ireland each vote to leave the EU, the UK would remain a member state. Aim to maintain Scotland s package of business rates relief worth an estimated 594 million for 2014-15 and 618 million for 2015-16. According to their manifesto, the SNP would vote for a mansion tax. Vote for the abolition of non-dom status. Plaid Cymru If a referendum on the UK s membership of the European Union is held, then there should be no withdrawal from the European Union if that is not supported in all four of the nations consulted. Reduce business rates, making town centres more affordable for small shops Increase business rates relief in Wales, helping over 83,000 SME businesses, with 70,000 paying no rates. There are no references to the non-domiciled status in their manifesto. CUSHMAN & WAKEFIELD 6
CONTACT POLLY PLUNKET-CHECKEMIAN PARTNER, EMEA HEAD OF RESEARCH & INSIGHT polly.plunket-checkemian@eur.cushwake.com Tel: +44 20 7152 5831 Mobile: +44 7793808831 JOANNA TANO DIRECTOR, EMEA HEAD OF CENTRAL RESEARCH & CONSULTANCY joanna.tano@eur.cushwake.com Tel: +44 (0) 20 7152 5944 Mobile: +44 7824 311 492 Cushman & Wakefield LLP 43-45 Portman Square London W1A 3BG www.cushmanwakefield.co.uk @CushWakeRtailUK