BCC calls for 'unblocking fund' for stalled developments

Many private-sector house-building projects are stalled because local infrastructure would not be able to cope with the increased demand, the BCC said in a statement to the Chancellor, George Osborne, ahead of his Autumn Statement next month. It said that the creation of a £100m 'unblocking fund' would allow "targeted resources" to be available to provide the infrastructure needed for such projects to go ahead.

The BCC also proposed that the Government should increase the Homes and Communities Agency's (HCA) building target by 100,000 houses. The HCA currently has a target to provide 150,000 additional affordable homes by 2015. The BCC said the proposed increase would boost the economy by stimulating employment in the construction sector and benefit a "wide range of UK-based firms and suppliers".

Business growth should be promoted by the introduction of a £100m 'Growth Voucher' scheme, the statement said. The scheme would allow businesses to receive £5,000 of funding to help them negotiate the planning system, get advice on accessing finance or grow their staff.

The BCC also said that public infrastructure faces an "alarming investment challenge" over the next decade. It called on the Government to incentivise and de-risk private investment in infrastructure by providing investors with certainty of returns. It said that long-term mechanisms could include a government-backed 'Infrastructure Investment Bank' or a 'Reverse Sovereign Wealth Fund' allowing indirect investment in projects at a guaranteed rate of return.

The BCC said it "continues to support the aims of the deficit reduction plan, but believes the government must pull out all the stops to enable British businesses to access new markets, invest and create jobs".

"The Chancellor's Autumn Statement must include tough decisions to prioritise growth, without adverse effects on the government's deficit reduction programme," said BCC director general John Longworth. "We believe that resources need to be re-prioritised to support business growth, international commerce, and the building of houses and infrastructure here at home. Our message to the Chancellor is clear. Business will lead Britain's economic recovery, but needs targeted support and a confidence boost from government."

“Firms up and down the country have been looking for ways to grow, export to new markets, and take on more staff in the face of weak growth and continued problems in the eurozone. While recent GDP data will give many businesses a confidence boost, the government still has work to do to ensure that our economic recovery is sustainable over the long-term," he said.

George Osborne will make his Autumn Statement on 5 December.