Ahead of the Chancellor’s Spring Statement later today, the government has announced an extra £2 billion to support affordable and social housing schemes.
A significant milestone, it says, on its promise to create 1.5 million new homes and get Britain building.
But in a sign of the challenge facing the government, this cash injection is expected to deliver only 18,000 new affordable homes from 2027 – just 1.2% of what’s needed.
This follows the publication of the Planning and Infrastructure Bill, which contains wide-ranging reforms aimed at streamlining the planning process to speed up the delivery of new homes.
1.5m new homes – a big pledge by Govt
Announcing the investment, Deputy Prime Minister and Housing Secretary, Angela Rayner said: “This is just the latest in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation.”
The government says this initial £2 billion is a ‘down payment’ from the Treasury ahead of more long-term investment in housing expected as part of its Spending Review in June.
With the building industry estimating it needs a 30% increase in skilled workers to deliver the government’s housing targets, the government says it is training 60,000 construction workers for that very purpose.
‘Plan for Change’
Chancellor of the Exchequer, Rachel Reeves, said: “We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.”
Let’s hope Labour’s “Plan for Change” is more than just another three-word slogan and really does deliver – including in the form of bricks and mortar.
