Local government still faces cuts of around 3% in central grant next year, but yesterday’s announcement spared councils from having to share any more of the £2.1bn cuts in departmental budgets over the next two years.

Looking beyond the headline figures, the emerging theme was economic growth. The main winner being the country’s 39 Local Enterprise Partnerships (LEPs). Michael Heseltnine won the debate and LEPs will now get more control over council housing revenue accounts, which will enable them to borrow more for major housing projects.

There were also further incentives announced, which are aimed at increasing the speed by which new homes are delivered. Most notable was the new city deal for Greater Cambridge, which could lead the way in the development of new gain-share deals through which areas are able to claw back some of the taxes generated by local growth.

The government announced a raft of new policy reviews which are aimed at stimulating growth. Including:

New Homes Bonus – the Government will consult on measures to improve incentives. It seems that new measures include withholding payments where local authorities objected to development, and planning approvals were granted on appeal.

Section 106 - the government will consult on a new 10 unit threshold for section 106 affordable housing contributions "to reduce costs for small builders".

Permitted development - the government "will consult on liberalising change of use from retail to restaurant or assembly and leisure uses.

Special measures - Increasing the threshold for designation under its "special measures" policy – Likely to increase from 30% to 40% of decisions made on time.

Social housing – the government will look into the possibility of allowing councils to sell council estates in order to kick start regeneration.

But, as always the devil is in the detail!

Nick Vose has joined Iceni Projects as an Associate in the Engagement Team. He has particular experience in London.