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The Autumn Budget lacked the ambition we need
Philip Hammond’s Budget fell short for housing, writes Melanie Rees
I have to admit it – I’m disappointed with what the chancellor’s 2018 Autumn Budget offered for housing and welfare.
Despite the prime minister stating that, after Brexit, housing is her number one priority, you wouldn’t have picked that up from yesterday’s statement.
It’s true that following my initial reaction (“anyone would think we didn’t have a housing crisis”), I reflected on the ‘tricks’ of Budgets past such as punitive cuts to welfare entitlement, many of which have caused needless hardship and fuelled the shocking levels of homelessness and rough sleeping we are seeing now.
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But while it’s a relief that the era of unpleasant surprises seems to have passed, I can’t stop thinking about the recent Guardian investigation which revealed that at least 440 people have died while sleeping rough or in temporary accommodation since October 2017.
What was I hoping to see from the Budget? My top three wishes were:
- Rebalancing of the £53bn housing budget, which is currently skewed towards private housing initiatives with affordable housing receiving just a 21% share of the cake
- Restoring the link between the consumer price index and Local Housing Allowance rates, recognising that the existing freeze is seriously affecting people’s ability to find and keep a decent place to call home, as our recent research showed
- Reversing the cuts to Universal Credit work allowances so that people can keep more of their earnings as their income increases – an important principle of this benefit when it was originally designed
So the announcement of £1.7bn to increase Universal Credit work allowances was very good news, as was the £1bn over five years in additional protection for existing claimants moving on to universal credit from other benefits.
The housing measures took up just two of the full Budget statement’s 106 pages. Some will make a difference.
Confirmation that local authority borrowing caps will be lifted – something that the Chartered Institute of Housing and others have campaigned hard for since 2012 – was good to see, as was the extension of strategic partnerships between Homes England and nine housing associations.
This longer-term, strategic approach is essential if we are to boost the number of affordable homes to the scale we need.
But overall the Autumn Budget lacked the ambitious vision we need to make sure that we have the right homes, in the right places, at prices that everyone can afford.
Mr Hammond confirmed that there will be a comprehensive spending review next year. We have to seize the opportunity this presents to make sure that housing and homes at genuinely affordable rents get the government support and resources they deserve.
Melanie Rees, head of policy and external affairs, Chartered Institute of Housing
Autumn Budget 2018 - full coverage
All our Autumn Budget 2018 coverage in one place:
The Autumn Budget lacked the ambition we need Philip Hammond’s Budget fell short for housing, writes Melanie Rees
There were no big fireworks but the Budget offers an opportunity to deliver The Budget leaves associations facing a choice and we must now deliver, argues David Montague
Names of new housing association strategic partnerships revealed Homes England has released the names of the eight housing associations that have just signed strategic partnerships with the government.
Budget a missed opportunity on housing, says NHF Reaction to the Autumn Budget from several organisations, including the National Housing Federation
Budget small print reveals significant announcements for housing Housing policies contained in the Autumn Budget and background documents published yesterday will have a large impact, if they actually go ahead, writes Jules Birch
Hammond’s extra Universal Credit cash is welcome – but we need homelessness specialists in Job Centres too The Autumn Budget must not become a missed opportunity to put in place measures to prevent homelessness, argues Ruth Jacob of Crisis
Hammond announces extra funding for Universal Credit: Philip Hammond has announced plans to pump more money into Universal Credit in the Autumn Budget today.
Help to Buy equity loan scheme extended to 2023 for first time buyers:The Help to Buy equity loan scheme will be extended two years to 2023 for first time buyers only, with new price caps set for each English region.
Housing Live - the Autumn Budget 2018 as it happened: Live-blogging from Jules Birch reveals how the Autumn Budget unfolded and what it means for housing
OBR: scrapping council borrowing cap will deliver only 9,000 new homes: Scrapping the borrowing cap will deliver only 9,000 new homes over the next five years, the Office for Budget Responsibility (OBR) has said.
Letwin: builders of large sites must accept more ’diversity’ of tenure: Builders should be required to accept suggested levels of affordable housing for large sites in order to receive government support, including Help to Buy, a major review of housebuilding has concluded.
Chancellor announces strategic partnerships with nine housing associations: Nine housing associations have signed new strategic partnerships with the government to deliver over 13,000 homes, Philip Hammond has announced.
Stamp duty scrapped for buyers of shared ownership homes worth up to £500,000: Stamp duty will be scrapped for first-time buyers of homes for shared ownership, the chancellor has announced.
