One of the hottest topics at the moment is the recent Labour Budget, the first one since 2010. It will have an impact on every single area, from farming to private schools. What we want to do is have a look at what it means for architecture. It is something we care greatly about as one of the top architects in London.

Spending boost

The most pivotal part of the whole Budget is there will be a spending boost. The chancellor, Rachel Reeves, has a plan to spend £100bn in the next five years to ignite growth. At the same time, the goal is to tackle the deficit.

A number of areas will see a boost in funding. Perhaps most important is schools. There will be £1.4bn for rebuilding. The hope is this will help to reinvigorate the educational infrastructure in the UK, something that is desperately needed.

In addition, there will be an extra £500m going to the affordable homes programme. This is important because the UK is in the midst of a housing crisis, with supply struggling to keep up with demand. While the hope is the funding will allow more homes to be built, there are fears this alone will not be enough. It will still take a monumental effort from architects in London and other parts of the UK to supply new, high quality homes.

Right to Buy change

Another part of the budget that could help improve housing supply is a change to Right to Buy. It is fantastic that people have the opportunity to purchase their council home. However, there is a massive issue in that it means a gradual reduction in the amount of social housing in an area. This is worsened because the receipts from the sales didn’t always go back to the local council. That will all change now though; the councils will get all of the money to reinvest back into building more housing.

Planning

There have been massive calls for reforms of the planning framework for years. While this Budget won’t include big changes in regulations, it does provide benefits. Crucially, there will be more investment for local authorities, allowing them to hire and train more planners. The hope is it will make it easier for projects to get decisions, freeing up the backlog and getting the construction sector moving.

Retrofitting

A negative aspect of the Budget is the lack of action to encourage retrofitting and refurbishments. There was hope there’d be new VAT relief for these projects to encourage people to upgrade homes to make them more energy efficient. Sadly, it is missing. It means an opportunity to improve housing stock, reduce emissions, and improve energy use has been missed.

Negatives

The biggest negatives in the Budget are the tax hikes and bigger burden being placed on businesses. It could have a big impact on architects in London and other parts of the UK.

Crucially, there will be an increase in employer national insurance contributions. It could have a big impact on profitability, especially for small and medium size firms.

The worry here is higher costs and a hit to profits could also make businesses rethink hiring plans. It could cause an issue for people looking for jobs, especially new graduates.

Finally, there is a concern about the lack of vision for how to create new places. The fear is plans will lead to a continuation of urban sprawl and reliance on cars. This would miss the opportunity to look at crucial things like urban renewal and designing for sustainability.

Do you want help from top architects in London?

Coffey Architects is committed to helping deliver a great future for the built environment in the UK. We work to design high quality properties, whether it is housing, educational spaces, commercial buildings, or anything else. We can look at crucial things like sustainability and energy efficiency. Ultimately, we think every project should deliver long term benefits.

So, if you need help from some of the finest architects in London, speak to us. You can also browse our website if you want to discover our work.