Tag Archive for: World Politics

Homeowners facing double charges due to unadopted infrastructure.

Homeowners Hit With Double Charges as Essential Infrastructure Remains Unadopted

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Thousands of homeowners are facing unexpected and unfair financial burdens as vital infrastructure on new housing estates, including roads and drainage systems, remain unadopted by local authorities. This situation forces residents to pay for maintenance and services they already contribute to through council tax, creating a ‘double-charging’ scenario.

Key Takeaways

  • Ninety percent of new housing developments built in the last three years have unadopted roads, with 97% of new sewers and 98% of sustainable drainage systems (SUDS) also remaining unadopted.
  • Homeowners are paying service charges for these unadopted amenities on top of their council tax, which should cover such services.
  • Significant inconsistencies exist across local authorities, with some adopting no new roads at all.
  • Barriers to adoption include rising costs, differing design requirements, and lengthy adoption processes.

The Scale Of The Problem

Research from the Home Builders Federation (HBF) reveals a stark reality: only 10% of new developments with 10 or more homes built in the past three years have had their roads adopted by local authorities. This leaves the vast majority, 90%, under the management of private companies. The situation is even more pronounced for essential services like sewers and sustainable drainage systems (SUDS), with 97% and 98% respectively remaining unadopted years after construction.

Unfair Financial Burden On Homeowners

When public bodies fail to adopt roads and infrastructure, home builders are compelled to arrange private management. This arrangement effectively transfers the responsibility and cost of maintenance onto the homeowners. These residents are then burdened with paying service charges for services like road upkeep and drainage, despite already contributing to these through their council tax payments. The HBF describes this as a “fragmented, unfair system for homeowners and builders alike.”

Inconsistencies And Delays

The research highlights significant disparities in adoption rates among local authorities. A third of councils surveyed reported no new roads adopted in recent developments, and only one council had adopted all new roads. Further compounding the issue are delays in sewer adoption, as local authorities often will not adopt roads until the sewers are formally adopted. Data from the UK’s six largest water companies shows a mere 3% of sewer adoption applications were completed in the last three years, with only 2% of SUDS applications being successful.

Calls For Reform

Barriers preventing public adoption include escalating costs for bonds, inspection fees, inconsistent local authority design standards, and the protracted nature of the adoption process. The Competition & Markets Authority (CMA) has identified this issue and recommended reforms, including the implementation of a common adoptable standard for public amenities across the UK and mandatory adoption of infrastructure on new housing estates.

The HBF is urging the government to act on these recommendations. They are calling for statutory timelines for adoption agreements, a review of financial requirements for highway bonds, increased capacity and resources for local authorities, and reduced bills for residents living on estates with unadopted amenities. Neil Jefferson, CEO of the HBF, stated, “Unadopted housing estates leave homeowners unfairly burdened with ongoing costs whilst placing a significant strain on house builders.”

Sources

London skyline with new housing construction cranes.

London Housing Crisis: Government Unveils Emergency Measures to Boost Housebuilding

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The UK government has announced a significant package of emergency measures aimed at revitalising housebuilding in London, which has seen a dramatic decline in new developments. The initiative seeks to address a “perfect storm” of high interest rates, rising material costs, and post-pandemic economic impacts.

Key Takeaways

  • Affordable housing targets for new private developments in London have been reduced from 35% to 20%.
  • A £322 million Developer Investment Fund has been established to support City Hall’s efforts.
  • The Mayor of London has been granted new powers to fast-track planning and call in schemes.
  • Temporary relief from development levies and some design restrictions are being introduced.

Addressing the Housing Slump

The government, in collaboration with the Mayor of London, has introduced a series of urgent interventions designed to make development sites more viable and encourage developers to commence construction. These measures come in response to a severe downturn in the capital’s housing market, with some boroughs reporting zero new starts in the first quarter of the year.

Key Policy Changes

The package includes several key policy shifts:

  • Reduced Affordable Housing Quotas: The mandatory percentage of affordable housing on new private developments has been lowered from 35% to 20%. This is intended to improve the financial viability of schemes and incentivise developers.
  • Fast-Tracked Planning: A time-limited planning route will be available for sites committing to at least 20% affordable housing. This route includes streamlined processes and the potential for Mayoral call-in powers for schemes of 50 homes or more.
  • Developer Levy Relief: Housebuilders will receive temporary relief from the Community Infrastructure Levy (CIL) for projects commencing before December 2028, provided they help unlock development.
  • Design Flexibility: Certain design guidance that constrains density will be removed, offering developers more flexibility as long as basic standards for ventilation, daylight, and privacy are met. Cycle storage requirements will also be made more flexible.
  • Mayor’s Enhanced Powers: The Mayor of London will gain new authority to review and call in housing schemes of 50 homes or more, and to make decisions on developments exceeding 1,000sqm on green belt land.
  • Developer Investment Fund: An initial £322 million has been allocated to establish a City Hall Developer Investment Fund to further boost housebuilding.

Sector Reaction

The announcement has elicited a mixed response from the housing sector. While many housebuilders and developers have welcomed the measures as a necessary step to stimulate activity and restore market confidence, concerns have been raised about the reduction in affordable housing targets. Some organisations have stressed that the lower targets must be a temporary measure and not set a precedent for future affordable housing requirements. There are also ongoing discussions about the effectiveness of these measures in addressing the fundamental issue of housing demand.

Government and Mayor’s Statements

Housing Secretary Steve Reed stated, “I have worked closely with the Mayor of London to give the capital the shot-in-the-arm it needs to ensure more Londoners have an affordable home of their own.” Mayor of London, Sadiq Khan, added, “With these significant new powers and the initial £322 million of funding from the government – plus the short-term emergency action to get more investment flowing into affordable housing – I’m confident that we can kickstart housebuilding and deliver more of the affordable homes Londoners badly need.”

Sources

Steel production with industrial background.

EU and UK Steel Prices Set to Soar Amidst New Tariffs and Carbon Regulations

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Steel prices in the European Union and the United Kingdom are anticipated to rise significantly as new tariffs and the Carbon Border Adjustment Mechanism (CBAM) are implemented. This forecast, originating from British steel supplier All Steels, suggests a substantial impact on import costs and domestic market dynamics.

Key Takeaways

  • The EU’s CBAM, effective January 1, 2026, could add £30 to £130 per ton to UK import costs.
  • Revised EU safeguard measures will halve duty-free imports to 18.3 million tons annually.
  • Anticipation of coordinated UK measures with the EU to restrict non-EU imports.
  • Potential for domestic demand to reach 18-20 million tons, aiding sector profitability and decarbonisation investment.
  • Short-term price increases of up to £80 per tonne, potentially exceeding £200 per tonne by late 2026.

Impact of CBAM and Tariffs

The forthcoming CBAM is expected to directly increase the cost of steel imports into the UK, with estimates ranging from £30 to £130 per ton, contingent on the origin and carbon intensity of the steel. This mechanism aims to level the playing field by imposing a carbon cost on imported goods equivalent to that produced within the EU.

Revised EU Safeguard System

Simultaneously, the EU is revising its safeguard system, which will cap total duty-free imports at 18.3 million tons per year. This represents a substantial reduction, approximately half of the current quota, thereby tightening the market for imported steel.

UK’s Potential Response

While the UK government has not yet finalised its stance, All Steels anticipates that the UK will introduce measures similar to or coordinated with the EU. This could involve restrictions on imports from non-EU countries, mirroring the EU’s protective approach.

Market Dynamics and Price Projections

Negotiations with European manufacturers and distributors indicate an early shift, with buyers looking to pre-empt CBAM-related costs by returning to the market. Traders are reportedly scaling back imports from Asian markets due to extended lead times and tariff uncertainties, favouring local producers. All Steels forecasts a short-term price increase of up to £80 per tonne (€92.05). However, following the full implementation of protective measures in 2026, prices could surge beyond £200 per tonne (€230.1).

The company draws parallels with recent price movements in the United States subsequent to the introduction of trade measures there. Despite potential seasonal price declines in the near term, market sentiment among steel mills is improving as buyers increasingly turn to domestic supply chains.

EU’s Rationale for Protection

The European Commission’s proposal, presented in October, aims to shield the EU steel industry from the adverse effects of global overcapacity. The proposed measures include limiting duty-free imports and doubling the duty rate on products exceeding the quota to 50%.

Sources

House foundation with water nearby, builder overseeing construction.

Builders Back Plan to Future-Proof Homes Against Rising Flood Risks

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The Federation of Master Builders (FMB) has thrown its support behind the new Flood Ready Review, an independent action plan aimed at making property flood resilience a standard feature in new builds and renovations. With climate change exacerbating flood risks, the plan outlines crucial steps to protect millions of homes across the UK.

Key Takeaways

  • The Flood Ready Review proposes practical measures to integrate property flood resilience (PFR) into mainstream homebuilding and renovation.
  • It emphasizes the vital role of small and medium-sized builders in implementing PFR solutions.
  • The FMB advocates for enhanced skills, clear standards, and accessible products to support builders.
  • Collaboration between government, insurers, lenders, and the construction industry is deemed essential.

Addressing the Growing Flood Threat

Climate change is significantly increasing the risk of flooding, with projections indicating that by 2050, one in four homes could be affected. The Flood Ready Review, commissioned by the Environment Agency and led by Professor Peter Bonfield OBE FREng, highlights the urgent need for a coordinated approach. The report stresses the importance of collaboration among government bodies, insurance companies, lenders, and the construction sector to tackle this challenge effectively.

The Role of Small and Medium-Sized Builders

Small and medium-sized builders are identified as key players in delivering trusted and high-quality flood resilience measures. These include practical solutions such as installing flood doors, raising electrical systems, and implementing permeable paving. The FMB champions the Review’s focus on equipping builders with the necessary skills and knowledge to integrate these measures seamlessly into their everyday work.

Enhancing Standards and Consumer Confidence

Brian Berry, Chief Executive of the FMB, stated that making property flood resilience as commonplace as insulation or fire safety requires robust standards, readily available products, and a skilled workforce. He emphasized that SME builders, with their local expertise, are crucial for implementing effective PFR solutions. Berry also highlighted the FMB’s belief that licensing builders is a vital step towards raising industry standards and boosting consumer confidence. By improving training, establishing clear guidelines, and ensuring homeowners have access to reliable products and services, flood resilience can become a standard aspect of building and retrofit projects, future-proofing homes and supporting communities.

Sources

EU and UK flags facing off over a steel beam.

EU Steel Tariffs Ignite Trade War Fears with UK, Threatening Brexit Deal

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The European Union’s decision to impose significant tariffs on steel imports has ignited fresh trade tensions with the United Kingdom, with industry leaders warning it could breach the Brexit agreement and trigger a severe crisis for the UK steel sector. The new measures, which include a 50% tariff on steel exceeding reduced quota limits, could drastically curtail British exports to the EU, a market worth nearly £3 billion annually.

Key Takeaways

  • The EU plans to introduce a 50% tariff on steel imports exceeding new, reduced quota limits.
  • This move could potentially halve the volume of UK steel that can be exported tariff-free to the EU.
  • The UK steel industry has voiced grave concerns, labelling it a potential ‘biggest crisis’ in its history.

EU Defends Tariffs Amidst UK Outcry

The European Commission has stated that the tariffs are a necessary measure to protect its domestic steel industry from a surge of cheaper imports, particularly from countries like China, Turkey, and India. Officials argue the move is designed to prevent market flooding and ensure fair competition. However, British manufacturers and trade analysts view the decision as thinly veiled protectionism that unfairly targets UK exports.

Impact on the UK Steel Industry

Gareth Stace, director-general of UK Steel, warned that the tariffs could be the “biggest crisis the UK steel industry has ever faced,” potentially determining the survival or collapse of many companies. With the EU being the UK’s primary export market for steel, accounting for nearly 80% of overseas trade, these prohibitive costs could effectively price British steel out of Europe. This comes at a time when UK steelmakers are already grappling with high energy costs, post-Brexit red tape, and intense global competition.

Government Response and Potential Recourse

The UK government has expressed its intention to seek urgent clarification from the European Commission and is exploring avenues to mitigate the impact. A spokesperson for the Department for Business and Trade stated that the UK is working with partners to ensure fair trade. Officials are reportedly considering bilateral discussions and may explore options through the World Trade Organization if the tariffs are found to contravene post-Brexit agreements. However, any legal challenges are expected to be lengthy, leaving the industry exposed to immediate financial damage.

Broader Economic and Geopolitical Context

The EU’s decision reflects growing pressure from its own steel producers facing competition from low-cost imports. This move risks exacerbating post-Brexit trade friction between the UK and the EU at a time when both sides are seeking to foster a more stable relationship. Communities heavily reliant on steel production, such as Port Talbot, Scunthorpe, and Rotherham, could face significant job losses and economic hardship if export volumes decline sharply. The new EU rules are expected to be finalised in the coming weeks, with potential implementation as early as next year, unless a compromise is reached.

Sources

Burnley Council building with residents protesting development.

Burnley Council Approves Controversial Commercial Development Amidst Resident Objections

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Burnley Council’s development control committee has granted planning permission for a new building to house six commercial units on the former Hargher Clough Mill site in Hargher Street, Burnley. The decision, made by DCL Lancashire Ltd, was approved despite significant opposition from local residents concerned about the impact on their properties and quality of life.

Key Takeaways

  • Burnley Council’s development control committee approved the construction of six commercial units.
  • The decision was made despite seven objections from nearby residents.
  • Concerns raised by residents include loss of light, amenity, increased noise, and impact on house values.
  • The site is allocated for housing, but previous development has established a precedent for light industrial use.

Project Details and Location

The proposed development by Padiham-based DCL Lancashire Ltd is situated on the northern area of the former Hargher Clough Mill site. The western half of the site retains an existing mill building and access, while the eastern area has been cleared. The central and southern parts of the wider mill site are already developed with industrial units. The site is relatively flat and enclosed by a high boundary wall, with a public footpath and residential properties located beyond its northern edge.

The Proposed Building and Amenities

The new industrial building will contain six units. It is designed to be a maximum of 36 metres wide and 15.2 metres deep, featuring a mono-pitched roof with a maximum height of 6 metres and eaves height of 4.5 metres. The development also includes plans for 13 additional car parking spaces, situated on the west and east sides of the building. Access to the site will be from Hargher Street.

Resident Concerns and Council’s Decision

Seven objections were lodged by nearby residents. Their concerns primarily focused on the potential loss of light to neighbouring residential properties and their rear gardens, a general loss of amenity, an increase in noise levels, and a potential negative impact on property values. A planning officer’s report acknowledged these objections, noting that the application was presented to the committee due to the number of objections received.

Despite the objections and the fact that the site is allocated for housing, the council’s decision was to grant permission. The report highlighted that the majority of the site has already been developed with light industrial storage units, and the remainder could not realistically be redeveloped for residential use. The principle of light industrial development had been established under a previous application. Consequently, while the proposal did not strictly align with Local Plan policy, it was deemed acceptable by the committee.

Sources

Prison construction site with crane and blueprints.

Kier Secures £250 Million in Contracts for Major Prison Expansion Projects

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Construction firm Kier has been awarded significant contracts totalling £250 million to expand prison capacity at HMP Northumberland and HMP Lancaster Farms. These projects are part of the Ministry of Justice’s initiative to increase the number of available prison places across the UK. The expansion will involve the construction of new houseblocks and associated facilities, aiming to enhance security and rehabilitation opportunities.

Key Takeaways

  • Kier awarded £250 million in contracts for prison expansions at HMP Northumberland and HMP Lancaster Farms.
  • The projects will add 480 prison places and include four new houseblocks at each site.
  • Completion is expected by early 2027.
  • These contracts reinforce Kier’s position as a leading contractor in the UK justice sector.

Project Scope and Timeline

Under the terms of the contracts, Kier will deliver four new houseblocks at both HMP Northumberland and HMP Lancaster Farms. In addition to the new accommodation, the projects encompass the development of new site-wide infrastructure and upgrades to existing ancillary facilities. The construction is slated for completion by early 2027.

Government’s Prison Capacity Drive

These expansions are a crucial component of the government’s broader strategy to create 14,000 new prison places by 2031. Kier’s involvement in the Small Secure Houseblocks Programme (SSHP) Alliance for the Ministry of Justice underscores its role in this national effort. This latest award brings the total number of houseblocks Kier will have delivered for the Ministry of Justice and the Scottish Prison Service to 30 in recent years.

Kier’s Track Record and Rehabilitation Initiatives

Kier has a proven history in delivering projects within the justice sector, having previously completed HMP Five Wells and HMP Millsike. The company is also currently undertaking expansions at HMPs Elmley, Bullingdon, and Channings Wood. Beyond construction, Kier is committed to rehabilitation through its ‘Making Ground’ initiative. This program offers training and employment opportunities for prisoners, with 29 individuals at HMP Channings Wood recently graduating from its ‘Hard Hat Ready’ course. Over the past three years, this initiative has led to 75 prison leavers securing employment and 64 placements for prisoners released on temporary licence.

Strategic Importance and Future Outlook

Rebecca Boundy, Kier Construction’s Managing Director for Justice, expressed pride in being a trusted delivery partner, emphasizing the focus on repeatability and continuous improvement to enhance performance and reduce lifecycle costs. Fiona Parker, Deputy Director for the SSHP at His Majesty’s Prison & Probation Service, highlighted that the expansions are a vital step towards providing secure, modern, and rehabilitative facilities that contribute to public protection and prisoner development.

Sources

New social and affordable homes built in Manchester.

Manchester City Council Unlocks Over 700 New Social and Affordable Homes

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Manchester City Council is set to significantly boost the city’s affordable housing stock with plans to release council-owned land for the development of over 700 new social and affordable homes. This initiative is part of a broader strategy to meet the city’s ambitious housing targets and provide much-needed homes for residents.

Key Takeaways

  • Over 700 new social and affordable homes will be built on council-owned land.
  • The developments aim to meet the city’s target of 10,000 new social, council, and affordable homes by 2032.
  • Partnerships with housing providers are crucial to delivering these homes at pace.
  • Several specific sites across the city have been identified for development.

Boosting Affordable Housing Stock

Mancunian residents will soon benefit from a substantial increase in social and affordable housing as Manchester City Council moves forward with plans to utilize its own land for new developments. This initiative is a key component of the city’s commitment to building at least 10,000 new social, council, and affordable homes by 2032, with a specific focus on delivering 3,000 homes in the city centre.

Strategic Land Use and Partnerships

The council is leveraging its unused and surplus land parcels by collaborating with the Manchester Housing Providers Partnership (MHPP). This partnership ensures that the right mix of homes are built in areas where they are most needed. Over the past three years, MHPP members have been responsible for approximately 90% of all affordable homes constructed in Manchester, with a strong emphasis on keeping rents at social rent or Manchester Living Rent levels.

Upcoming Developments Across Manchester

Several sites have been earmarked for these new homes, including:

  • Broadmoss, Charlestown: 271 homes for social rent and shared ownership.
  • Viadux 2, Deansgate: A 133-unit social rent apartment tower.
  • Alexandra Road, Moss Side: 64 homes and apartments capped at Manchester Living Rent.
  • Gransmoor Avenue, Openshaw: 51 social rent homes.
  • Former Levenshulme Baths: 34 apartments capped at Manchester Living Rent.
  • Project 500 Phase 2: An additional 160 homes across 12 sites in north and east Manchester.

Furthermore, plans are in motion for an additional 400 homes in Gorton Town Centre, to be built by Clarion.

Council’s Commitment to Housing

Councillor Bev Craig, Leader of Manchester City Council, highlighted the council’s dedication to its housing strategy. “We are delivering on our commitment… to vastly increase the number of affordable homes – including significant numbers of social housing – being built in Manchester,” she stated. Craig emphasized that the current pace of affordable home construction on council land is unprecedented since 2015, a success attributed to strong partnerships with city housing providers. “Providing council-owned land to create opportunities for new home building is a proven approach,” she added, noting that over 1,000 affordable homes have been unlocked this month alone through these latest developments.

Sources

UK science agency estate overhaul tender

UK Science Agency Launches £800 Million Estate Overhaul Tender

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UK Research and Innovation (UKRI) has initiated a significant procurement process, seeking a long-term construction partner for an ambitious £800 million estates programme. This initiative aims to transform and decarbonise its national science and technology research sites over an eight-year period, starting in July 2026.

Key Takeaways

  • UKRI is seeking a construction partner for an £800 million estates programme.
  • The contract will run for eight years, from July 2026 to July 2034.
  • The programme includes backlog maintenance, asset replacement, and new infrastructure construction.
  • Expressions of interest are due by November 14th, with an award expected in December.

The Scope Of The Project

The Science and Technology Facilities Council (STFC), part of UKRI, has published a tender notice for a construction firm to deliver capital works. This partnership will focus on the national estate transformation and decarbonisation programme. The scope encompasses essential backlog maintenance, the replacement of aging assets, and the construction of entirely new infrastructure across STFC’s various research facilities.

Estate Locations And Investment

STFC’s extensive estate includes prominent sites such as the Rutherford Appleton Laboratory and Cosener’s House in Oxfordshire, the Daresbury Laboratory in Warrington, the Royal Observatory in Edinburgh, the Boulby Underground Laboratory in Cleveland, and the Chilbolton Observatory in Hampshire. The estimated maximum spend for this contract is £800 million, excluding VAT, potentially reaching £960 million with VAT. UKRI has cautioned that this figure represents an upper limit and is not fully guaranteed. Furthermore, STFC anticipates that backlog maintenance, future expansion needs, and the decarbonisation of its buildings and infrastructure will require an annual investment of approximately £120 million over the next 15 years.

Procurement Process

The construction partner will be appointed through a competitive flexible procedure, adhering to the Procurement Act 2023. The process involves a pre-qualification questionnaire, followed by two stages of dialogue with shortlisted bidders. A final assessment centre will then be used to determine the successful firm. Interested companies have until November 14th to submit their expressions of interest, with the contract award anticipated in December.

Key Takeaways

UK steelworkers at busy construction site with cranes

EU Steel Tariffs Threaten to Derail UK Construction and Steel Sector

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The European Union’s recent proposal to double steel import tariffs and drastically reduce quota-free steel imports has sent shockwaves through the UK’s steel manufacturing and construction sectors. With most of the UK’s steel exports bound for the EU, industry leaders are warning of severe disruptions, delays to major projects, and potential existential threats to domestic steel producers.

Key Points

  • EU plans to increase out-of-quota steel tariffs to 50% while nearly halving tariff-free quotas
  • UK construction sector could see cost escalations and delays as a result
  • The UK government is under pressure to secure preferential treatment or specific quotas
  • Industry leaders fear a surge in diverted steel imports and job losses

Background to the EU Tariff Hikes

The European Commission has proposed raising steel tariffs applied to imports that exceed newly lowered quotas. Under the plan, tariff-free steel imports to the EU would be capped at around 18 million tonnes—a significant reduction from previous years—while out-of-quota shipments would be hit with a 50% duty. The move comes as the EU seeks to defend its own steelmaking capabilities in the face of global overcapacity and cheap imports, particularly from China and Turkey.

For the UK, the stakes are high: around 78% of British steel exports currently head to the EU. UK Steel, the sector’s trade body, has described the move as possibly the gravest threat the industry has yet faced.

Impact on UK Construction and Jobs

Analysts warn that the construction sector, already under strain from inflation and project delays, could face even tougher times if steel prices rise further. With hundreds of billions of pounds of public projects planned over the coming decade—including key investments in transport, housing, and healthcare—any disruption to steel supply chains could result in spiralling costs and timeline setbacks. Contractors may be forced to reconsider or even abandon projects if budgets become untenable.

The measures are also viewed as a major threat to employment in regions where UK steel manufacturing underpins local economies. Union leaders and business representatives have voiced deep concern that an influx of redirected steel shipments from other markets could destabilise Britain’s remaining steel producers.

Government and Industry Response

British officials are urgently seeking clarification from Brussels, and talks are expected to focus on the possibility of a country-specific quota or exemptions for the UK. Industry leaders have called on the government to act assertively, urging measures to restrict a potential flood of redirected steel imports and to ensure fair treatment for UK exporters.

Union figures stress the need for rapid negotiation to secure the industry’s future and safeguard thousands of jobs. The government, for its part, has reiterated its commitment to defending domestic steel and supporting preferential access to global markets.

Next Steps and Outlook

The EU’s proposal is subject to ratification by its member states and the European Parliament, with implementation anticipated early next year. As all parties await further details, UK manufacturers and construction firms are bracing for a period of heightened uncertainty. Strong advocacy at the negotiation table and robust domestic policy measures are seen as critical to averting a crisis that could reverberate throughout the UK’s industrial landscape.

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