On Wednesday 11 June, Chancellor Rachel Reeves will publish the government’s long -awaited expenditure review. This will explain the government’s spending plans for the coming years and cover both expenses and investments.
Reeves has already announced an increase in the financing of £ 190 billion during the assessment period of the spending and an investment package of £ 113 billion, of which it said it will “extend the growth of power and our public services.”
“Public investments will be at the highest continuing level since the 1970s,” said Reeves in a speech last week. “Combined, these changes provide more than £ 300 billion in extra expenses for five years, to our public services and at our economic future.
“Great -Britain is confronted with a binary choice – investments or decline. And I choose investments because I believe in an entrepreneurs and an active state.”
Yet Reeves said that “not every department gets everything they want next week”. With cupboards that all compete for financing, where the government chooses to allocate its expenses, there will be an important reflection of its priorities.
So what does this mean for housing?
“Most people, including politicians, accept that we are in the midst of a home crisis, so we hope that the Chancellor will address this, in particular the constant shortage of social and affordable homes for sale and rent in areas of the big demand,” says Jeremy Leaf, broker, broker and a former RIC’s residential chairman.
“We have heard many encouraging words since the government’s change, but change on the spot is not happening fast enough. Uncertainty is the enemy of investments and the costs of being nothing is much higher.”
In the midst of uncertainty, this is what we might expect from tomorrow’s expenditure review.
The government is under pressure to reach its election objective to build 1.5 million new houses
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The Labor government promised to build 1.5 million new houses in its election manifesto, and Reeves is under pressure to allocate the financing to achieve these goals. It is expected that new home investments will be announced on Wednesday.
Florence Eshalomi, chairman of the Cross-Party Housing Committee, said that the assessment “makes or break for the 1.5 million target” in a Open letter to Reeves Last week.
According to the committee, the government will not achieve this goal if it only depends on investments in the private sector, instead claim that a “generation increase of social and affordable home investments is required”.
Shelter has consistently called on the government to invest in 90,000 social houses per year in the spending review to end homelessness.
“While homelessness is rising and more than 1.3 million households are stuck on a social house, it is absurd that we continue to lose more social houses than we build,” said Polly Neate, Chief Executive of Shelter. “In order to really erase waiting lists and to terminate homelessness, the government must now make sufficient investments in the next spending review to build 90,000 social rental homes per year for ten years.”
The National Housing Federation states that housing must sit next to a new affordable housing program. The models show that an investment of £ 7.8 billion a year could deliver 500,000 houses to all social landlords.
It has also called for a rental scheme of 10 years to support housing, as well as targeted financing to repair and remedy existing housing stock.
“Action to tackle the problems is not just about building, but that it is better used from existing stock,” Leaf agrees. “We want to see that the transaction numbers increase, a larger balance between supply and demand and more help for first buyers who are not helped by another boom and bust in prices.”
But although an increase in expenditure on affordable homes is expected in the spending review, it is still to be seen how much is being assigned.
Reversal of winter fuel reductions
After he had been chosen last year, Reeves announced that the winter fuel payment, worth a maximum of £ 300, would be deleted for around 10 million pensioners, with only those on pension credit to remain eligible.
Now pensioners with an income of £ 35,000 or lower are entitled to the payment. For couples, if every partner as an income on or under £ 35,000, they will retain the entire winter fuel payment. If they are both above this level, they will lose it.
If one of them has an income of £ 35,000 or lower, and the other has a higher income, they receive half of the winter fuel payment.
The government wants the 715,000 Housing Association Hertekens afterwards with an EPC rating under C
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In his manifesto, Labor has promised a £ 6.6 billion “Warm Homes Plan“To support energy -efficient upgrades with properties such as solar panels, batteries and low carbon heating.
With the tightening of budgets, however, there are ensure that some of these investments will be reduced.
The National Housing Federation has called for work to continue to finance the program in accordance with its manifest obligations. It warns that the government should almost double its current progress to meet its objective of the 715,000 housing association Huizen with an EPC rating under the C.
Housing that is re -classified as an infrastructure
A group of six housing associations has called for homes to be classified as a critical infrastructure prior to the spending evaluation. Between them, the associations possess or manage more than 1.7 million houses in the United Kingdom.
The reclassification, they argued in their Submission of the assessmentwould enable Reeves to commit extra money to housing without breaking its tax rules.
They wrote: “Reclassifying investments in the home as infrastructure expenditure would unlock long -term financing, which makes consistent delivery, larger strategic developments and better use of resources possible. Herclassification is the only way we can deliver the pipeline of new houses and the renewal of existing houses and the renewal of existing cities and cities.
“Housing is fundamentally essential and important infrastructure, and therefore financing must be classified in the same way as other important national projects such as road, rail, schools and hospitals. With the support of recent planning reforms, new houses can be delivered at the pace and the scale needed to tackle the home crisis.”
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