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Spending Round: sector slams Javid as housing drops down priority list

Leading housing figures from across the sector have slammed the chancellor’s Spending Round announcement, calling his failure to prioritise housing “disappointing” and lamenting the lack of funding giveaways for the sector.

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Spending Round: sector slams Javid as housing drops down priority list #ukhousing

On Wednesday chancellor Sajid Javid delivered his Spending Round, setting out departmental budgets for 2020/21.

As part of the Spending Round, Mr Javid revealed that the Ministry of Housing, Communities and Local Government would be given a 2.7% increase in spending next year, the first increase since 2010.

Other funding pledges for the housing sector included an additional £54m to help tackle homelessness, £40m to go towards Discretionary Housing Payments, and £24m to support the government’s Building Safety Programme in response to the Hackitt Review.

However, some have argued that the money given to housing paled into insignificance when compared with other areas, such as health and education which received multibillion-pound funding commitments from Mr Javid.


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Terrie Alafat, chief executive of the Chartered Institute of Housing, said: “We are disappointed the government has not included housing in those areas, like health and education, [in] getting a long-term additional funding settlement. We are facing a national housing crisis, and every day we do nothing about it, it’s getting worse.”

The Spending Round was the first fiscal event since prime minister Boris Johnson took over the role from Theresa May in July. When in power, Ms May repeatedly put housing as her “number one domestic policy”.

Commenting on the Spending Round, Tony Stacey, chief executive of South Yorkshire Housing Association, said: “I suppose it’s not a huge surprise.

“There has been no suggestion at all that the positive direction that Theresa May was taking was going to be supported, and that lack of priority for housing is being reflected in the Spending Round.”

Helen Evans, chief executive of Network Homes and chair of the G15, also voiced her disappointment, saying it wasn’t the “statement of intent” on housing that she had hoped for.

Ms Evans did call for housing to be included as part of the “infrastructure revolution” promised by Mr Javid during his speech. As part of the plan, the government intends to publish an infrastructure strategy later this year.

Brian Berry, chief executive of the Federation of Master Builders, said housebuilding and the retrofitting of homes must be included in the infrastructure spending, while Polly Neate, chief executive of Shelter, said that the construction of three million new social homes should be considered.

There were a number of calls ahead of the Spending Round for the government to restore Local Housing Allowance (LHA) rates to ensure they cover the most affordable 30% of rates.

Mr Stacey said: “It’s very disappointing that the government isn’t ending the LHA freeze. It’s fine to have bits in there for homelessness and rough sleeping but it’s just a sticking plaster.”

Mike Thiedke, chief executive of housing charity Depaul UK, said: “The gap between rents and housing benefit is trapping young people in homelessness. This gap means it will remain very hard for councils to help young people find housing.”

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