RICS Response to the Welsh Government's Budget

RICS Response to the Welsh Government's Budget

RICS welcomes the Welsh Government’s budget for 2024-25 and appreciates the focus on key areas that will drive the prosperity of Wales, including housing, planning, and economic growth. In particular, we welcome several initiatives outlined in the budget that align with objectives to promote sustainable development and economic well-being in Wales.

Increased Funding for Social Homes

RICS supports the Welsh Government’s commitment to increasing funding for social housing provision, especially with the risk they will fail to meet their 20,000 new homes target within the current government’s term.

The announcement of £81 million in investment for new housing supply will support the creation of much-needed accommodation for vulnerable individuals and families, which is especially important at a time when social housing providers are under increased pressure to fund improvements in existing stock quality, building safety and sustainability.

However, further investment and targeted policy measures will be required to ensure the effective delivery of these homes, including a commitment to supporting the construction workforce and addressing the challenges posed by rising material costs.

Business Rates

The capping of the non-domestic business rates multiplier is a positive move that will help ease the burden on businesses in Wales, especially in the face of ongoing economic challenges.

Ahead of the budget, a number of businesses expressed concerns to RICS over the risk that business rates relief may not be extended at the current rate of 40%, or reduced further, for those in certain industries including hospitality.

As the Welsh economy continues to recover from the impacts of the pandemic and other global pressures, this measure will support businesses, particularly in sectors that are struggling with rising costs and inflation.

RICS encourages the Welsh Government to continue engaging with the business community to ensure that the rates system remains fair, transparent, and effective in promoting economic growth.

Investment in Planning Services

RICS welcomes the allocation of £3.7 million to boost planning services in Wales.

Efficient and effective planning is essential for facilitating sustainable development, regeneration, and growth. This funding will support the enhancement of planning processes, improving the efficiency and effectiveness of decision-making in local planning authorities.

The investment in planning services will also help to streamline development processes, reduce backlogs, and promote a more transparent and user-friendly system.

RICS believes that a robust planning system is critical to delivering quality infrastructure, housing, and commercial developments that meet the needs of Welsh communities while ensuring environmental sustainability.

Overall, the Welsh Government’s budget for 2024-25 demonstrates a strong commitment to addressing some of Wales most pressing challenges, particularly in housing, business support, and planning. RICS looks forward to continuing its collaboration with the Welsh Government, local authorities, and other stakeholders to ensure the effective delivery of these measures and to help create a prosperous, sustainable future for Wales.