Regulation doesn't need to be a millstone

We need a properly managed recovery.

There has finally been something to cheer about in recent weeks. The economy seems to be experiencing some meaningful growth, unemployment appears to be dropping across the country and the property sector is at long last out of the doldrums. All in all, with the winter months fast approaching, it seems that the "green shoots" we’ve heard so much talk about over the past few years are finally beginning to germinate.

As we all know, tied to all the economic woes of recent times is the property sector. Property represents a huge proportion of the UK’s wealth and when the sector starts to suffer, so too does everything else. In the same way that we need a healthy banking sector to support the nation’s businesses, we need a healthy property and construction sector to build our homes, maintain our roads and make sure our assets are correctly valued. In a nutshell, property makes the world go around.

We know that the Coalition Government is reluctant to create new laws or legislation, seeing it as a potential burden on business. It is for this reason that they’ve pushed ahead with the likes of the Red Tape Challenge, since so many large firms have cited "regulation" as a cost holding back their growth plans. In this environment, professional standards and ethics, created by professional institutions, are all the more important.

We need specialists operating to regulated professional standards and guidance to protect against things like projects coming in way over budget or homes not being built properly. Ministers rightly say the state can’t do everything, and nor would we want it to; they turn to the professional institutions and their members to provide guidance and certainty. The standards set by RICS for its members safeguard against these things and are the sort of thing we’re going to need if we’re going to have a lively yet sustainable property sector powering our economy.

Regulation does not need to be a millstone around the neck of the long-awaited recovery. With an effectively regulated, ethical property sector driving the UK forward, it is not green shoots that we’re looking to in twenty years, but a blooming garden.

Photograph: Getty Images

Mark Walley is Regional Managing Director of RICS EMEA.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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