Wednesday’s October Budget is fast approaching, with chancellor of exchequer Rachel Reeves set to announce large changes
Reeves has confirmed some changes ahead of the October Budget’s full announcement, ranging from school building to debt rule changes.
Some in the construction industry are apprehensive, but many have a more positive outlook as they look forward to a more concrete plan moving forward.
Extra funding for schools and homes
Reeves has confirmed that the Autumn Budget will see an allocation of funds for both affordable housing, and the 10-year rebuilding programme originally announced in 2021 for schools.
Schools will receive an extra £550m in funding to both build new schools and renovate existing ones, especially those plagued by RAAC causing them to fall apart.
The original programme promised 50 new schools per year, but so far with the pandemic and economy affecting the construction industry, just 23 schools have been built to completion. The plan currently covers 518 projects.
A further £500m will be allocated to the Affordable Homes Programme, helping to fund the construction of 5,000 new affordable homes, and as a headstart on the housing strategy due to be announced in Spring.
£128m will also be put towards new housing projects, encompassing 28,000 new builds blocked by river pollution (cleaning the rivers in the process), 3,000 energy-efficient homes, and 2,000 new homes in north Liverpool
Brownfield sites
Confirmed funding of £68m has been allocated towards unlocking brownfield sites across the country.
The money is for the more complicated preparatory works that many brownfield sites require, and will be spread across 54 different local authorities. The pledge was stated to be a further commitment to the delivery of 1.5m homes by the end of this Government’s term.
Debt rules
The treasury has heavily hinted towards a change to their own debt rules in order to free up funds for infrastructure projects.
The change will involve introducing independent checks for major building works, and loosening the rule that debt must be lower after five years of borrowing.
This will allow for more efficient borrowing for investment in infrastructure, including rail, road, and building sectors.
A significant step in the plan to get Britain building again
Rachel Reeves said: “We need to fix the housing crisis in this country. It’s created a generation locked out of the property market, torn apart communities and put the brakes on economic growth.
“We are rebuilding Britain by ramping up housebuilding and delivering the 1.5 million new homes we so badly need.”
Deputy prime minister Angela Rayner said: “We have inherited a housing system which is broken, with not enough homes being built and even fewer that families can afford.
“This is a further significant step in our plan to get Britain building again, backing the sector, so they can help us deliver a social and affordable housing boom, supporting millions of people up and down the country into a safe, affordable and decent home they can be proud of.”
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