The government is expected to announce a plan to underwrite up to £50bn of private sector building projects.
The Treasury is expected to use the Infrastructure (Financial Assistance) Bill to help start up £40bn of infrastructure projects by using the government’s low interest rates to underwrite them.
Government will also underwrite up to £10bn of housing projects including guaranteeing the debt of housing associations and private sector developers.
The plan comes as government makes efforts to speed up planning legislation. Prime Minister David Cameron said yesterday that he wanted to “cut through the dither” that was holding the British economy back.
Daniel Farrand, Mischon de Reya head of planning, said: “The uncertainty created by further planning reform could be as damaging as any inherent delays in the current system.
“We already are seeing the effect of years of uncertainty.
“The reality is that planning changes, even those to speed up the system, always take years to bed down. Easily the worst way to go about it is to throw all the balls back up into the air.”
A Cabinet reshuffle could also be announced as early as tomorrow as MPs return for a new parliamentary term.
nick.whitten@estatesgazette.com
