Sector criticises ‘disappointing’ Spring Budget as chancellor sidelines affordable housing

Sector responses

Initial sector responses to the chancellor’s package of measures have been critical.

The CIH’s Mr Smart said that while some measures were welcome, the Budget had been “disappointing” from a housing perspective. 

“There were some welcome announcements to help support people in debt, such as the temporary extension of the Household Support Fund, which we had called for, and the abolition of the Debt Relief Order charge, but they won’t bring down rising housing costs,” he said.

“In our pre-Budget submission, we called for urgent action to boost social housing supply, invest in homelessness prevention and decarbonise the residential sector. These calls remain and we’ll continue to push the government to go further. We need a sustainable housing system to support a vibrant economy.”

Phil Andrew, group chief executive at 47,000-home Orbit, said the housing association was disappointed that a focus on long-term affordable housing was “noticeably absent”.

“While we welcome the extension of the Household Support Fund for a further six months while the cost of living crisis continues, we were disappointed to see that a strong focus on long-term affordable housing was noticeably absent from the chancellor’s Spring Budget, with measures not going far enough to help unlock the much-needed delivery of new affordable homes required to tackle the housing crisis,” he said.

“We have been calling on government for a laser focus on delivering new homes to achieve better economic outcomes, safer communities and a healthier nation since the publication of our manifesto ‘Good Housing is the Key’, a call which has been echoed by many.

“Only last week, the National Housing Federation and Shelter became the latest to bring to the forefront the huge economic and social benefits that building new affordable homes throughout the UK offers. With an election now looming, we urge all political parties to give housing the attention it deserves.”

Mark Perry, chief executive at 35,000-home Vivid, also criticised the Budget for failing to mention affordable homes.

“Despite announcements around support for several specific development projects, the need for significant investment to drive the delivery of housing of all types and tenures, especially affordable homes, failed to be addressed in today’s Budget,” he said.

“Without investment across the board, from planning authorities to grant rates, and without support for a long-term housing plan here in the UK, the existing crisis will only be exacerbated to the country’s further detriment.

“Given that future investment in UK housing stands to generate long-term economic and social benefit, as well as Treasury savings, it was disappointing this wasn’t recognised in today’s Budget.” 

Geeta Nanda, chief executive of Metropolitan Thames Valley Housing, welcomed parts of the Budget, but also criticised the lack of help announced for “millions of people for whom a safe, secure and affordable home remains out of reach”.

She said: “Many of our residents will welcome the extension of the Household Support Fund and of the Universal Credit debit repayments. These will help ease pressures on vulnerable people and families who are continuing to live with the cost of living crisis.

“It was also good to see some significant investment in Barking and Dagenham, Canary Wharf and Leeds. However, the Budget did little to expand supply more broadly for millions of people for whom a safe, secure and affordable home remains out of reach. With the government’s own figures showing over 142,000 children in temporary accommodation, depriving them of the stability and security they need as they begin their lives, the housing crisis is now an emergency.”

Lee Bloomfield, chief executive of Bradford-based Manningham Housing Association, said that it was “disappointing” that the chancellor did not mention building new affordable homes. He also said that housing association tenants were “far from the chancellor’s thoughts”.

“It is disappointing but not surprising that a commitment to build many more urgently needed affordable homes was absent from the chancellor’s remarks,” Mr Bloomfield said.

“Alongside the six-month extension to the Household Support Fund, the well-trailed cut to National Insurance was welcome, but it seems that will be paid for by phantom efficiency savings which, if they do not materialise, raise the prospect of further deep cuts to public services which are already in crisis.

“Those on middle and higher incomes will benefit most from the key Budget measures, particularly with the personal tax thresholds freeze remaining in place.

“Housing association tenants were far from the chancellor’s thoughts.”

Rick Henderson, chief executive of Homeless Link, the national membership organisation for frontline homelessness charities, criticised the chancellor for making a “dangerous decision to ignore the real experts”, the group’s members, and their repeated calls to safeguard invaluable homelessness services in the Budget.

“This is astounding, coming only days after the annual rough sleeping and latest temporary accommodation statistics issued the starkest of warnings on the severity of this country’s homelessness emergency,” he said.

Elizabeth Froude, chief executive of Midlands-based Platform Housing Group, welcomed some measures announced on Wednesday, including the extension of the Household Support Fund, but added that the “extension of only six months may need to be revisited, given the current crisis we are seeing”.

However, Ms Froude expressed the group’s disappointment at the lack of funding support for investments into new and existing social homes. 

“[We] are disappointed on the lack of support for energy improvement in existing homes and the silence on a commitment to more social rented homes, neither of which can happen on a scale and pace needed without government support.”