Introduction

Budget Statements are increasingly used to bring together policy announcements that involve public or stakeholder consultation. In this years Budget 60+** consultations were announced.

** it is not clear yet if some may overlap.

To assist Institute members and others and to ensure that they are aware of consultations that may affect them, this Paper highlights references from the 2012 Budget Statement.

This paper was prepared by Martin Woodrow

On the following pages we show the context in which consultations were mentioned in the Budget Statement, section by section.

To ensure speedy publication we have not attempted to index this summary. To find a subject you are interested in, assuming you will be using an Adobe Reader to open this document online, we suggest you use the Reader’s search function

To assist users we have used colour-coding as follows:-

Consultation  Future consultation
Consultation Previous consultation

To access the full text of the Budget Statement  click here

Executive Summary

n.b. some items are included in more detail in later sections

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in 2012–13 the Debt Management Office will consult on the case for issuance of gilts with maturities significantly longer than those currently in issue, that is in excess of 50 years, and/or perpetual gilts.

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the Government will consult on the introduction of an annual charge on residential properties valued at over £2 million owned by these persons with the intention of legislating in Finance Bill 2013 for commencement in April 2013;

extend the capital gains tax regime to gains on the disposal of UK residential property by non- resident, non-natural persons, such as companies, to support these changes. This will commence from April 2013, following consultation on the details of the measure;

accept the recommendation of the Aaronson Report that a General Anti-Abuse Rule (GAAR) targeted at artificial and abusive tax avoidance schemes would improve the UK’s ability to tackle tax avoidance while maintaining the attractiveness of the UK as a location for genuine business investment. The Government will consult with a view to bringing forward legislation in Finance Bill 2013.

introduce from April 2013 a new cash basis for calculating tax for small unincorporated businesses, following consultation. This will reduce the time it takes for these businesses to calculate their tax;

launch a detailed consultation on integrating the operation of income tax and NICs. This will be published after the Budget and build on extensive work undertaken with stakeholders through It will set out a broad range of options for the operation for employee, employer and self-employed NICs.

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introduce corporation tax reliefs from April 2013 for the video games, animation and high-end television industries, subject to State aid approval and following consultation, as part of a new ambition to make the UK the technology hub of Europe

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improve and reform the Enterprise Management Incentive scheme (EMI), which helps SMEs recruit and retain talent, by providing additional support to help start-ups access the scheme, consulting on amending restrictions that currently prevent the scheme being used by academics employed by start-ups, and more than doubling the individual grant limit to £250,000, subject to State aid approval;

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introduce an ‘above the line’ R&D tax credit from April 2013 with a minimum rate of 9.1 per cent before tax. Loss-making companies will be able to claim a payable credit. The

Government will be consulting on the detailed design of the credit shortly and final rates will be decided following consultation;

consult on simplifying the Carbon Reduction Commitment (CRC) energy efficiency scheme to reduce administrative burdens on business. Should very significant administrative savings not be deliverable, the Government will bring forward proposals in autumn 2012 to replace CRC revenues with an alternative environmental tax, and will engage with business before then to identify potential options.

Section 1 – Budget Report

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Debt Management

1.60 In light of evidence of strong demand for gilts of long maturities and against the backdrop of historically low long-term interest rates, in 2012–13 the Debt Management Office will consult on the case for issuance of gilts with maturities significantly longer than those currently in issue, that is in excess of 50 years, and/or perpetual gilts. Any subsequent decision about whether to proceed with issuance will be informed by the responses received to the consultation and assessed with reference to the Government’s debt management objective.

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Tax avoidance

1.194 Budget 2012 announces that the Government accepts the recommendation of the Aaronson Report that a General Anti-Abuse Rule (GAAR) targeted at artificial and abusive tax avoidance schemes would improve the UK’s ability to tackle tax avoidance while maintaining the attractiveness of the UK as a location for genuine business investment.20 The Government will consult with a view to bringing forward legislation in Finance Bill 2013

1.195 To ensure that individuals and companies pay a fair share of tax on residential property transactions and to tackle avoidance, the Government will: [amongst other things] tackle the ‘enveloping’ of high value properties into companies to avoid paying a fair share of tax. The Government will introduce a 15 per cent rate of SDLT to be applied to residential properties over £2 million purchased by non-natural persons, such as companies. This new rate will take effect on 21 March 2012. In addition, the Government will consult on the introduction of an annual charge on residential properties valued at over £2 million owned by these persons, with the intention of legislating in Finance Bill 2013 for commencement in April 2013;and to support this measure, the Government will extend the capital gains tax regime to gains on the disposal of UK residential property and shares or interests in such property by non-resident, non-natural persons. This will commence from April 2013, following consultation on the details of the measure.

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Simplification

1.209 The Government is exploring long-term reforms to simplify personal taxes. Budget 2012 announces that the Government will launch a detailed consultation on integrating the operation of income tax and NICs. This will be published after the Budget and build on extensive work undertaken with stakeholders through 2011. It will set out a broad range of options for the operation of employee, employer and self-employed NICs.

Small business

1.210 The Government is also responding to the OTS reports on small businesses taxation.22 From April 2013 the Government will introduce a new cash basis for calculating tax for small unincorporated businesses. The Government will consult shortly after Budget on the details of the scheme including on extending eligibility to businesses with turnover up to the VAT registration threshold of £77,000.

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Housing

1.222 In addition, the Government will consult on the potential role a social housing Real Estate Investment Trust could play to support investment in the social housing sector.

Technology

1.224 The Government is setting an ambition to make the UK the technology hub of Europe. To support technological innovation and help the digital, creative and other high technology industries, the Government: will introduce corporation tax reliefs from April 2013 for the video games, animation and high end television industries, subject to State aid approval and following consultation;

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Planning

1.235 The NPPF will refocus planning policy to better support growth, will include a powerful presumption in favour of sustainable development to underpin all local plans and decisions, and will localise choice about the use of previously developed land, ending nationally imposed targets. The Government will also work with key statutory consultees to ensure that they support the delivery of sustainable development in line with the NPPF and are held to account for doing so.

1.236 In addition, the Government: will introduce further measures to deregulate and simplify the planning system. The Government will shortly consult on reducing information requirements

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Reducing burdens on business

1.237 To reduce the costs and barriers that regulation and administrative burdens impose on businesses, the Government: will improve and reform the Enterprise Management Incentive scheme (EMI), which helps SMEs recruit and retain talent, by providing additional support to help start-ups access the scheme; by consulting on amending restrictions that currently prevent the scheme being used by academics employed by start-ups, and by more than doubling the individual grant limit to £250,000, subject to State aid approval; will consult on simplifying the Carbon Reduction Commitment (CRC) energy efficiency scheme to reduce administrative burdens on business. Should very significant administrative savings not be deliverable, the Government will bring forward proposals in autumn 2012 to replace CRC revenues with an alternative environmental tax, and will engage with business before then to identify potential options;

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Supporting employment

1.242 To reduce barriers to businesses taking on new staff the Government: [amongst other things] has completed a consultation on proposals to introduce fees for employment tribunals, which closed on 6 March 2012, and is now considering the responses. The Government intends to publish the response to the consultation before summer recess 2012;

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Corporate tax road map

1.247 As part of the Corporate Tax Road Map,34 the Government is: [amongst other things] introducing an ‘above the line’ R&D tax credit from April 2013 with a minimum rate of 9.1 per cent before tax. Loss making companies will be able to claim a payable credit. The Government will be consulting on the detailed design of the credit shortly and final rates will be decided following consultation.

Section 2 – Budget Policy Decisions

Personal tax, National Insurance contributions and welfare

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Income tax and National Insurance contributions

2.41 Income tax and National Insurance contributions (NICs) reform – The Government will consult on integrating the operation of income tax and NICs after Budget 2012

2.45 Government response to Office of Tax Simplification (OTS) employee share schemes review – The Government will consider the recommendations of the OTS’s review of the Government’s tax advantaged share schemes, and consult shortly on how to take these proposals forward. (Finance Bill 2013)

2.47 Enterprise Management Incentive (EMI) scheme – The Government will more than double the individual grant limit from £120,000 to £250,000, to commence at the earliest opportunity following State aid approval and provide enhanced guidance to support start-ups. Entrepreneurs’ Relief will be extended to gains on shares acquired through EMI, and the Government will consult on extending the scheme to academics employed by a qualifying company, from April 2013 subject to State aid approval. (Finance Bill 2013) (14)

2.51 Statutory residence test – As announced at Budget 2011, the Government will introduce a statutory definition of tax residence for individuals. As announced on 6 December 2011, introduction of this test will take place on 6 April 2013. The Government will publish a summary of responses and draft legislation for consultation after Budget 2012. (Finance Bill 2013)

2.52 Reform of ordinary residence – The Government will abolish ordinary residence for tax purposes from 6 April 2013 but will retain overseas workday relief and put it on a statutory footing. A summary of responses will be published with draft legislation for consultation after Budget 2012. (Finance Bill 2013)

2.53 Statement of Practice (SP1/09) – As announced in the consultation on reform of non- domicile taxation in June 2011, the Government will put SP1/09 on a statutory footing. SP1/09 provides an administrative easement for employees who are resident but not ordinarily resident in the UK and have a single contract of employment covering duties carried out in the UK and overseas. The Government will consult on draft legislation after Budget 2012 which will be effective from 6 April 2013. The existing SP1/09 will remain in force for the 2012–13 tax year. (Finance Bill 2013)

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Taxation of pensions

2.61 Commuting small personal pension funds – As announced at Autumn Statement 2011, the Government will extend the existing pensions tax commutation rules to allow individuals aged 60 or over to commute funds of £2,000 or less held in personal pensions into a lump sum regardless of their other pension savings, subject to a maximum of two such commutations in a lifetime. Draft legislation was published for consultation on 6 December 2011 and the final legislation will take effect from 6 April 2012.

2.69 Qualifying Recognised Overseas Pension Schemes (QROPS) – The Government will introduce changes in primary legislation to strengthen reporting requirements and powers of exclusion relating to QROPS. They support the changes in secondary legislation published for consultation on 6 December 2011.

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Taxation of Savings

2.71 Income tax rules on interest – The Government will consult shortly after Budget 2012 on proposals for possible changes to the income tax rules on the taxation of interest and interest- like returns, and rules on the deduction of tax at source from such amounts. (Finance Bill 2013)

2.72 Qualifying Time Deposits – As announced at Budget 2011, and following consultation, legislation will be introduced to require deduction of income tax at source from interest paid on Qualifying Time Deposits made on or after 6 April 2012. (Finance Bill 2012) (ab)

Capital gains tax and inheritance tax

2.74 Withdrawals from foreign currency bank accounts – As announced in the consultation on the reform of non-domicile taxation in June 2011, the Government will legislate to remove the CGT liability from capital gains which arise on withdrawals of money in foreign currency bank accounts. This will take effect from 6 April 2012. (Finance Bill 2012)

2.75 CGT regime and non-residents – As part of the Budget 2012 measures on residential property, the Government will extend the CGT regime to gains on disposals by non-resident non-natural persons of UK residential property and shares or interests in such property, commencing from April 2013, following consultation on the details of the measure. (Finance Bill 2013)

2.78 Transfer of assets abroad and gains on assets held by foreign companies – As announced in December 2011 the Government will amend two pieces of legislation designed to protect theUK tax base. These are contained in sections 714 to 751 of the Income Tax Act 2007 (transfer of assets abroad) and section 13 of the Taxation of Chargeable Gains Act 1992 (gains on assets held by foreign companies closely controlled by UK participators). The Government will consult on draft legislation after Budget 2012 and will implement changes in Finance Bill 2013.

2.79 Inheritance tax (IHT): spouses and civil partners domiciled outside the UK – The Government intends to increase the IHT-exempt amount that a UK-domiciled individual can transfer to their non-UK domiciled spouse or civil partner. The Government similarly intends to allow individuals who are domiciled outside the UK and who have a UK-domiciled spouse or civil partner to elect to be treated as domiciled in the UK for the purposes of IHT. These proposals will be subject to a technical consultation. (Finance Bill 2013)

2.80 IHT: periodic charges on trusts – The Government will consult on simplifying the calculation of IHT charges to which trusts are subjected at ten-yearly intervals and when property is transferred out of the trust.

Corporate taxes

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Corporation tax

2.100 R&D tax credit: ‘Above the Line’ (ATL) – From April 2013, the Government will introduce an ATL credit for R&D, with a minimum rate of 9.1 per cent before tax. Loss-making companies will be able to claim a payable credit. The Government will consult on the detailed design of the credit shortly after Budget. Final rates, including for the payable credit, will be decided following consultation. (Finance Bill 2013)

2.101 Corporation tax reliefs for the creative sector – Following consultation on the design, the Government will introduce corporation tax reliefs for the video games, animation and high-end television industries from April 2013, subject to State aid approval. (Finance Bill 2013)

2.114 Corporate capital gains simplification: foreign currency assets and capital gains rules – The Government will consult in summer 2012 on whether to introduce a rule allowing companies with a non-sterling functional currency to compute their capital gains and losses in their functional currency.

2.115 Lease premium relief – Subject to consultation, the Government will introduce legislation to amend lease premium relief as it applies to long leases treated as short leases. (Finance Bill 2013)

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Taxation of financial services

2.118 Tax treatment of regulatory capital – As announced at Budget 2011, and following further consultation in 2011, legislation will be introduced in Finance Bill 2012 to introduce a power to determine the tax treatment of regulatory capital instruments issued in accordance with the Basel III and EU Capital Requirements Directive IV (CRD IV) proposals. Regulations will be made under this power and will take effect from the commencement of the CRD IV provisions. (Finance Bill 2012)

2.121 Solvency II and the taxation of life insurance companies – As announced in Budget 2011, legislation will be introduced to establish a new regime for the taxation of life insurance companies. This measure is effective from 1 January 2013 and represents a wide-ranging and fundamental revision of both the basis on which life companies’ taxable profits are computed and the detailed rules by which those profits are taxed. The legislation will include a targeted anti-avoidance rule to address cases where companies enter into arrangements with a main purpose of securing a tax advantage in connection with the transitional rules. This anti- avoidance rule, which has been modified in light of consultation and which is being published on 21 March 2012, may apply to arrangements entered into from 21 March 2012. (Finance Bill 2012)

2.124 Life insurance Qualifying Policies – The Government will limit the premiums that can be paid into Qualifying Policies issued from 6 April 2013, to £3,600 a year. Income tax relief will continue to apply to benefits from Qualifying Policies issued from 21 March 2012 and before 6 April 2013, but only in respect of the premiums paid in this period and premiums paid up to the limit thereafter. The Government will consult on the implementation of these changes during 2012. (Finance Bill 2013)

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Oil and gas taxes

2.125 Decommissioning certainty – Following its commitment at Budget 2011 regarding greater certainty on decommissioning tax relief, the Government will introduce legislation in 2013 giving it statutory authority to sign contracts with companies operating in the UK and UK Continental Shelf, to provide assurance on the relief they will receive when decommissioning assets. The Government will consult further on the precise form and details of such contracts in the coming months. (Finance Bill 2013)

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Other business taxes

2.130 Cash basis: tax calculations – Following the Office of Tax Simplification (OTS) review of small business tax, the Government will introduce a new cash basis for calculating tax for small unincorporated businesses from April 2013. The Government will consult shortly after Budget 2012 on the details of the scheme, including on extending eligibility to businesses with turnover up to the VAT registration threshold of £77,000. (Finance Bill 2013)

2.131 Standardised expenses for unincorporated businesses – The Government will consult on standardising business expenses, allowing a fixed amount to be claimed rather than recording actual amounts. (Finance Bill 2013)2.132 Disincorporation relief – The Government will consult over summer 2012 on introducing a disincorporation relief.

Indirect Taxes

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Alcohol duties

2.137 Alcohol fraud – The Government will consult on alcohol anti-fraud measures, including the introduction of fiscal marks for beer, supply chain legislation, and a licensing scheme for wholesale alcohol dealers. (future Finance Bills)

Tobacco duties

2.140 Treatment of herbal smoking products – Subject to consultation on the implementation process, the Government will legislate to make legally available tobacco-free (herbal) smoking products liable to excise duty, in the same way as tobacco products. (Finance Bill 2013)

Gambling Duties

2.145 Combined bingo – Subject to consultation, the Government will relax the current bingo duty arrangements for combined bingo involving non-UK participants. (Finance Bill 2013)

2.146 Remote gambling taxation – The Government will introduce a place of consumption based taxation regime for remote gambling, subject to consultation on the detail. (future Finance Bill)

Transport taxes

2.148 VED reform – The Government will consider whether to reform VED over the medium term to ensure that all motorists continue to make a fair contribution to the sustainability of the public finances, and to reflect continuing improvements in vehicle fuel efficiency. In addition, the Government aims to develop a direct debit system to allow motorists to spread their VED payments. The Government will seek the views of motoring groups on these measures.

2.159 Aviation tax: business jets – The Government will proceed with the extension of APD to flights taken aboard business jets, effective from 1 April 2013. Details were set out in the Government’s response to the APD consultation on 6 December 2011. (Finance Bill 2012)

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Carbon Taxes

2.167 Carbon Reduction Commitment (CRC) – The Government will consult on simplifying the CRC Energy Efficiency Scheme to reduce administrative burdens on business. Should very significant administrative savings not be deliverable, the Government will bring forward proposals in autumn 2012 to replace CRC revenues with an alternative environmental tax, and will engage with business before then to identify potential options. Allowances sold with respect to 2012–13 emissions will be £12 per tonne of carbon dioxide.

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Property Taxes

2.174 Enveloping of high value residential properties – The Government will apply a 15 per cent rate of SDLT to residential properties over £2 million purchased by certain non-natural persons. The 15 per cent rate will take effect from 21 March 2012. In addition the Government will consult on the introduction of an annual charge on residential properties valued over £2 million owned by certain non-natural persons with the intention of introducing legislation next year and the measure coming into effect in April 2013. (Finance Bill 2012 for rate; Finance Bill 2013 for annual charge)

2.175 Non-standard leases – The Government will consult on measures to simplify SDLT rules for non-standard leases. (Finance Bill 2013)

2.177 Real Estate Investment Trusts (REITs) – The Government will consult in 2012 on the REITs regime, and specifically on: the role REITs can play in supporting the social housing sector; and whether to change the treatment of income received by a REIT when it invests in another REIT. (Finance Bill 2013)

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VAT measures

2.179 VAT: correcting anomalies and closing loopholes – The Government will address anomalous VAT borderlines by applying VAT to the provision of self storage facilities and to approved alterations to listed buildings. VAT will also apply, to the extent that it does not already do so, to the sale of hot food, cold food consumed on the supplier’s premises, sports drinks and holiday caravans, and to the rental of hairdressers’ chairs. This will have effect from 1 October 2012. HMRC are publishing a draft Statutory Instrument for consultation on 21 March 2012.

2.182 VAT: amendment to RFSCs – Subject to consultation, the Government will amend the law relating to VAT Fuel Scale Charges, bringing long standing concessions into law and withdrawing a concession relating to partially exempt businesses. The way in which the annual revalorisation is carried out will be simplified.

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Tax reliefs

2.196 Office of Tax Simplification (OTS) review of reliefs – The Government announced in Budget 2011 that, following the OTS review of reliefs which reported on 3 March 2011, it intended to abolish certain reliefs in Finance Bill 2012 after a period of consultation.

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Anti-avoidance

2.198 General Anti-Abuse Rule (GAAR) – A consultation document will be issued in summer

2012 with a view to bringing forward legislation in Finance Bill 2013. The Government will consult on: new draft legislation based on the illustrative clauses in the Aaronson report; establishment of the Advisory Panel; and the development of full explanatory guidance. In addition, the Government will extend the GAAR to SDLT. The Government is committed to ensuring that this legislation effectively tackles artificial and abusive tax avoidance schemes and that the supporting guidance is practical both for taxpayers and for HMRC. (Finance Bill 2013)

2.200 SDLT sub-sales rules – The Government will introduce legislation, with effect from 21 March 2012, to make clear that the grant or assignment of an option cannot satisfy the requirements of the SDLT sub-sales rule. The Government will consult on the SDLT sub-sales rules. (Finance Bill 2012 and Finance Bill 2013)

2.203 High-risk areas of the tax code: taxation of unauthorised unit trusts – As announced at Budget 2011, the Government is undertaking a programme of work to improve areas of legislation that have been subject to repeated attempts at tax avoidance. As part of this review the Government will consult in summer 2012 on its intended reforms to the taxation of unauthorised unit trusts and publish draft legislation in autumn 2012. (Finance Bill 2013)

2.204 High-risk areas of the tax code: tax rules on manufactured payments – The Government will consult, as part of the programme of reviews of high risk areas of the tax code, on proposals to simplify the tax rules on manufactured payments, including the rules on manufactured overseas dividends. The consultation aims to simplify the current rules and improve understanding of the impacts of any proposed changes to those rules, including the impact on the potential for tax avoidance. (Finance Bill 2013)

2.205 High-risk areas of the tax code: income tax losses – As announced at Budget 2011, the Government is undertaking a programme of work to improve areas of legislation that have been subject to repeated attempts at tax avoidance. The Government will publish a response to the consultation after Budget.

2.207 Personal service companies and IR35 – The Government will introduce a package of measures to tackle avoidance through the use of personal service companies and to make the IR35 legislation easier to understand for those who are genuinely in business. This will include [amongst other things] subject to consultation, requiring office holders/controlling persons who are integral to the running of an organisation to have PAYE and NICs deducted at source by the organisation by which they are engaged. (Finance Bill 2013)

2.214 Disclosure of Tax Avoidance Schemes (DOTAS) – The Government will formally consult over summer 2012 on proposals to extend the DOTAS ‘hallmark’ (the descriptions of schemes required to be disclosed for income tax, capital gains tax or corporation tax) so as to capture avoidance schemes not currently notifiable, with a view to publishing draft regulations later in the year

2.215 Life insurance policies – The Government will introduce anti-avoidance legislation in Finance Bill 2012 to amend the rules for calculating chargeable event gains that may be liable to income tax. The changes will apply to policies issued on or after 21 March 2012, and to policies issued before this date in certain cases. The Government will also consult on reform to rules in the chargeable event gains regime that reflect a policyholder’s period of residence outside the UK, with a view to legislating in Finance Bill 2013. (Finance Bill 2012 and Finance Bill 2013)

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Tax administration

2.221 Self Assessment returns – The Government will consult later this year on legislation to enable HMRC to withdraw a notice to file a Self Assessment tax return in appropriate cases. (Finance Bill 2013)

2.222 Real Time Information – Following consultation, a regulation-making power will be introduced to facilitate the provision of information required for the operation of Real Time Information for PAYE. (Finance Bill 2012)

2.223 PAYE penalties – The Government will consult before the summer on a new model for PAYE late payment and late filing penalties, ahead of the main roll-out of Real Time Information in October 2013. (Finance Bill 2013)

2.224 Regulatory penalties – Following consultation, minor changes will be made to the regulatory penalties regime so that HMRC can, in the future, update their value in line with inflation and repeal obsolete penalties. (Finance Bill 2013)

2.225 Dishonest tax agents – Following consultation, from 1 April 2013 HMRC’s powers will be updated to more effectively target dishonest tax agents. (Finance Bill 2012)

2.227 Information powers – Following consultation, the Government will legislate to extend HMRC’s information powers to reflect international standards for transparency and exchange of information. (Finance Bill 2012)

2.228 Modernising customs legislation – Following consultation, the Government will update legislation in relation to detention and definition of goods and the size of penalties for smuggling on ships. (Finance Bill 2013)

2.229 Incapacitated persons – Following consultation, legislation will be introduced to remove the existing unsatisfactory definition of an incapacitated person. (Finance Bill 2012)

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Tax consequential changes

2.231 Tax reliefs and Personal Independence Payment (PIP) – The Government will publish draft legislation in autumn 2012 setting out how tax reliefs currently available to Disability Living Allowance (DLA) claimants will apply to claimants of PIP, which will replace DLA for working age claimants from 2013–14. In the interim the Government will consult specifically in relation to the definition of trusts for vulnerable and disabled people. (Finance Bill 2013)

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Supply Side Reform of the Economy

2.239 Environmental regulations– The Government will rationalise environmental regulation, including by: [amongst other things]

• consulting on simplifying the system for recording waste transfer;
• consulting on preventing excessive compliance costs for business from the Waste

Electrical and Electronic Equipment Regulations;

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Planning

2.243 National Planning Policy Framework (NPPF) – The Government will publish the NPPF by the end of March 2012, coming into force for plan-making and decisions from that point onwards, with appropriate implementation arrangements for local authorities in local plans. The NPPF will refocus planning policy to better support growth, will include a powerful presumption in favour of sustainable development to underpin all local plans and decisions, and will localise choice about the use of previously developed land, ending nationally imposed targets. The Government will also work with key statutory consultees to ensure that they support the delivery of sustainable development in line with the NPPF and are held to account for doing so.

2.244 Planning Simplification – The Government will introduce a number of measures to further deregulate and simplify the planning system. The Government will consult on reducing information requirements and on proposals to amend the Use Class Order and associated permitted development rights, to make changing the use of buildings easier, for implementation by April 2013. In addition new permitted development rights for micro- renewable energy installations will come into force in April 2012. The Government will also shortly set out more detail on the twelve-month Planning Guarantee.

2.246 Planning obligations – The Government will publish a consultation to allow the reconsideration of planning obligations agreed prior to April 2010 where development is stalled.

Section C – Financing

Page 100 Gilt issuance by maturity and type

C.9 In addition, the Debt Management Office (DMO) plans to deliver sales via mini-tender of £7.5 billion (4.5 per cent of total issuance). The mini-tender programme will continue to be used to support the syndication programme by providing flexibility to accommodate any variations in proceeds from syndicated offerings. In 2012–13 the use of mini-tenders will be extended to include the sale of short and medium conventional gilts. The DMO will decide on the maturities and types of gilts sold in consultation with the market during the year.

Disposal of Royal Mail Pension Plan gilt holdings

C.11 It is the Government’s intention that these gilts will be cancelled during 2012–13. Cancellation of gilts will have no impact on the CGNCR, the net financing requirement or any of the other fiscal aggregates. The DMO will invite feedback from the market, at its quarterly consultation meetings, on the appropriate timing of cancellation to take account of the impact on indices. The DMO will provide the market with good notice of any cancellations, including the stocks and amounts to be cancelled.

Page 100/1 New Instruments

C.12 In light of evidence of strong demand for gilts of long maturities and against the backdrop of historically low long-term interest rates, in 2012–13 the DMO will consult on the case for issuance of gilts with maturities significantly longer than those currently in issue, that is in excess of 50 years, and/or perpetual gilts. The consultation will build an evidence base to inform the Government’s decision on whether to issue such instruments. It will seek to establish the likely strength and sustainability of demand, the cost-effectiveness and risks of issuance, and the impact on market liquidity and the good functioning of the wider gilt market. C.13 No presumption has been made about issuance at this stage, and any subsequent decision about whether to proceed with issuance will be informed by the responses received to the consultation and assessed with reference to the debt management objective. If any such decision were made to proceed with issuance in-year, this would be reflected at the time of the next planned remit revision.

This is the 30^th Briefing Paper; a full list of subjects covered is available for Institute members and is a valuable resource covering so many aspects of consultation and engagement