Decent homes cut to pay for £1.5bn building pledge
The government’s £1.5 billion investment in building affordable housing will be paid for through cuts to existing schemes, including decent homes.
The Communities and Local Government department has revealed funding will be taken from its growth fund, decent homes, and private sector renewal programmes to finance the building scheme.
Other departments will also be expected to cough up £930 million for the Building Britain’s Future pledge, which was announced by prime minister Gordon Brown last month.
The affected departments include: Business, Innovation and Skills; Transport; Children, Schools and Families; the Home Office, and Health.
The Homes and Communities Agency has also been asked to hit an increased efficiency target of 3 per cent in operational savings, and to find £183 million through ‘efficient and flexible management’ of its housing and regeneration programmes.
Housing minister John Healey said ‘tough decisions’ had been made, but the programmes affected within CLG would be able to bid for cash from the prime minister’s housing pledge.
He added that the government remains committed to completing the decent homes programme, and continuing to invest £1 billion in private sector renewal.
Sir Bob Kerslake, chief executive of the HCA, said: ‘Government has had to make some difficult decisions as to where funding should come from, based in part on the HCA’s existing wider programme, but there is a premium on new build activity and I am pleased that the sector has seen the benefit of putting an additional £1.5 billion into housing delivery.’