The sector needs more than just grant funding from the Budget

While we’re grateful for the support already in place, further reforms would help create a more level playing field, strengthen financial resilience and accelerate the delivery of both new homes and improvements to existing stock. These reforms must be considered in the context of the long-term economic and societal benefits that the country stands to gain.

“We’re eagerly awaiting further details of how the National Housing Bank will support the sector with low-cost funding”

Having a 10-year grant programme will help delivery and certainty, but there’s a further step the government could take to really support development activity – helping reduce our borrowing costs.

By extending and scaling the existing guarantee scheme, the government could effectively underwrite future borrowing. This would help attract new funding to the sector while aiding housing associations in doing more with the lending they secure.

On the existing borrowing front, we’re eagerly awaiting further details of how the National Housing Bank will support the sector with low-cost funding. If anything, we hope the budget will see decisions brought forward on rent convergence – a vital area of reform that will support the sector in investing in existing and new homes. The earlier the implementation, the better, as budgets will benefit from the compound effect of convergence, while lenders should see overall improvements in sector finances over a shorter period.

With fuel poverty remaining a real challenge for many customers, and with energy prices still high, let’s hope we’ll see a proper plan come forward shortly that helps address retrofit issues around strategic direction, skills and funding. With a long-term plan prepared that supports the sector and wider supply chain, we’ll also need to see an agency that has clear accountability for delivering it.

Let’s see the government commit the necessary resources and skills to this on the 26 November – such a step would, in our view, pay longer term dividends.

To further support the sector’s efforts around retrofitting, it’s time there was a levelling in tax terms. With every penny counting right now, it would be a bonus to sector budgets if VAT on materials, such as double glazing for instance, was zero rated. With local councils already benefitting from such an approach, it’s right that not-for-profit providers are similarly placed, particularly given ongoing wider cost pressures.

We also need to consider the implications of the revised Decent Homes Standard and Minimum Energy Efficiency Standards, and while convergence will help budgets to a degree, a new long-term funding programme that supports investment and improvements in existing homes would be timely.

“With fuel poverty remaining a real challenge for many customers, let’s hope we’ll see a proper plan come forward shortly that helps address retrofit issues around strategic direction, skills and funding”

While we appreciate the fiscal pressures facing the government, we’d urge against any additional national insurance rises. While organisations like ours are working hard to effectively manage budgets, increases in operational costs will only add to the challenge. Any further increases here will mean tough choices having to be made around services offered and staff recruitment, for instance.

We recognise the clear challenges the government has and the need to balance the books. But if the government wants the sector to remain well placed to support the needs of existing and future customers, investing in the reforms suggested while being alive to the consequences of potential tax changes is a must.

David Ball, chief financial officer, Vivid