By David Williams
27 May 2010
Ministers’ promises to prioritise cash for new social homes amid broader cuts in communities spending has been questioned by experts and dismissed by the Opposition as ‘false’.
Outlining a round of spending cuts to take place in the current financial year, Chancellor George Osborne announced that some of the savings would be used to provide £170m for ‘around 4,000 otherwise unfunded social rented homes’.
Osborne said the savings would form part of a £500m package of investment to build growth and make Britain fairer.
But his calculation was disputed, as it was widely believed that the social housing had already been funded as part of the ‘Housing Pledge’ – a £1.5bn package drawn up by the previous housing minister, John Healey.
Under Osborne’s plans, other parts of the package are to lose out, with £100m less to be given to housing associations, and a £50m cut in the Kickstart programme to stimulate private house builders. That reduction forms part of a £780m cut to the communities budget.
Healey, now shadow housing minister, said: ‘Trying to herald extra money to safeguard social housing is false and a fig leaf for the serious cuts that will follow.
‘The Housing Pledge was fully funded – not axing money that is already funding a programme does not constitute new money.’ He also warned that the £150m cut from the Housing Pledge would mean the loss of many new affordable homes, along with jobs and apprenticeships.
A senior source in local government agreed, telling Public Finance: ‘We’re all a bit confused. I think there are certainly issues about whether it is genuinely extra money.’
But Osborne’s plan was more broadly welcomed by housing groups.
Sarah Webb, chief executive of the Chartered Institute of Housing, said: ‘It is encouraging that there is obviously a commitment here to supporting house building and investment in much-needed social housing.’ But she added that the nature of the cuts was not yet clear.
The Homes and Communities Agency, which administers the Housing Pledge cash, could not confirm whether the remaining funding was now safeguarded, or whether the June 22 Budget could bring further cuts.
27 May 2010
Ministers’ promises to prioritise cash for new social homes amid broader cuts in communities spending has been questioned by experts and dismissed by the Opposition as ‘false’.
Outlining a round of spending cuts to take place in the current financial year, Chancellor George Osborne announced that some of the savings would be used to provide £170m for ‘around 4,000 otherwise unfunded social rented homes’.
Osborne said the savings would form part of a £500m package of investment to build growth and make Britain fairer.
But his calculation was disputed, as it was widely believed that the social housing had already been funded as part of the ‘Housing Pledge’ – a £1.5bn package drawn up by the previous housing minister, John Healey.
Under Osborne’s plans, other parts of the package are to lose out, with £100m less to be given to housing associations, and a £50m cut in the Kickstart programme to stimulate private house builders. That reduction forms part of a £780m cut to the communities budget.
Healey, now shadow housing minister, said: ‘Trying to herald extra money to safeguard social housing is false and a fig leaf for the serious cuts that will follow.
‘The Housing Pledge was fully funded – not axing money that is already funding a programme does not constitute new money.’ He also warned that the £150m cut from the Housing Pledge would mean the loss of many new affordable homes, along with jobs and apprenticeships.
A senior source in local government agreed, telling Public Finance: ‘We’re all a bit confused. I think there are certainly issues about whether it is genuinely extra money.’
But Osborne’s plan was more broadly welcomed by housing groups.
Sarah Webb, chief executive of the Chartered Institute of Housing, said: ‘It is encouraging that there is obviously a commitment here to supporting house building and investment in much-needed social housing.’ But she added that the nature of the cuts was not yet clear.
The Homes and Communities Agency, which administers the Housing Pledge cash, could not confirm whether the remaining funding was now safeguarded, or whether the June 22 Budget could bring further cuts.
