Government "all in" on housing

"George Osborne’s foray into the planning row concerning the draft NPPF now engulfing the coalition government will only serve to heighten tensions and provoke angry responses. But why is he wading in?

The economic meltdown now facing the US and Europe is causing the government to react, and the NPPF is a part of that. It is certainly a Treasury driven document.

The economic realities of a possible double dip recession, the reported growth in youth unemployment and the reported slow down in the construction industry have all led to calls from leading economists for the government to change tack. The Manager of PIMCO, one of the largest investment funds, Bill Gross, has warned George Osborne that his austerity measures risk pushing the UK into recession. In an interview with The Times, Gross called on Osborne to rethink the strategy, arguing UK economic conditions had proved it was not working. “'The UK economy in the UK is worse off than it was when the plan was developed”.

So the drive for growth and the presumption in favour of development enshrined within the draft NPPF becomes ever more critical and ever more needed in the eyes of government. Of course politically George Osborne cannot be seen to be changing tack, but as Harold Macmillan said, “events dear boy, events”, have a habit of knocking politicians off course.

There is real fear that the economy is about to take a nose dive, there are red lights all over the economic data and with the US and European Banks taking money out of the European Banking system the bad news just keeps on coming.

Now take the fact the construction industry and housing has been such a driver for economic growth in the UK and the Treasury’s need for the NPPF to open the door to greater house building, and to unlock the door to development over the protests of communities becomes the central driver for policy making.

The row over the NPPF has been heated between the CPRE, National Trust and the Tory led government. It is surreal to see Tory ministers in stand up rows with those who they courted the support of for years, but now they see the economic reality staring them in the face the choices could not be starker.

The row over the NPPF prompted 23 former Royal Town Planning Institute presidents to call for "reasoned debate and clear thinking" in a letter to the Telegraph last week.

So when Osborne weighs into the debate on the NPPF and planning reforms saying they are 'key to our economic recovery', and writing that "no one should underestimate our determination to win this battle". The stakes keep on being raised. The government is at an important crossroads and Localism looks like it may be mortally wounded by the harsh economic reality of austerity and the fact the Treasury has no plan B."

Paul Harvey

Paul is a Curtin&Co Consultant and former Leader of Basinstoke & Deane Borough Council. He is also a current councillor in Basingstoke's Norden ward, and Leader of the Basingstoke Labour Group