This was one of the most housing-free Budgets in 30 years

In one of the most housing-free Budgets for 30 years, new announcements were few and far between.

There was confirmation that strategic decisions over affordable housing grant will be devolved to Greater Manchester and the West Midlands.

There was a more surprising move to offer local authorities a temporary discount of 40 basis points for borrowing for their Housing Revenue Account (HRA) from the Public Works Loan Board. Coming less than five years after the Treasury imposed a premium for HRA borrowing, that is a welcome development.

“There appeared to be confirmation that the Treasury has reclaimed billions in capital spending from the Department for Levelling Up, Housing and Communities”

But that’s as good as it got. In another indication of housing’s declining importance, there were not even enough minor announcements to allow for a discrete section in the Budget Red Book. Instead, housing had to be combined with infrastructure in a section that gave top billing to a fund to fix potholes.

There also appeared to be confirmation that the Treasury has reclaimed billions in capital spending from the Department for Levelling Up, Housing and Communities (DLUHC).

The Autumn Statement in November put the DLUHC capital spending budget at £9.5bn for this year (2022-23) plus a further £900m for the Levelling Up Fund. That has now shrunk to just £7.2bn, with just £600m of the difference reallocated for 2023-24 and 2024-25.

Exactly how much money has disappeared, what it was for and for how long remain unclear. The total underspend tallies with figures reported by the Financial Times earlier this month, although the reallocation to future years is lower.

Social landlords will need no reminding that this comes at a time when total funding for new homes is already under pressure from higher inflation, costs for building safety and investment in existing stock, and plans to replace Section 106 with the Infrastructure Levy.

No departmental spending plans were set out for beyond the next election. However, with DLUHC’s capital spending set to fall over the next two years even before allowing for inflation, the costs of the announcements that were made on Wednesday imply that they will be eye-wateringly tight.

In a Budget that was supposedly focused on growth, there was no support for housebuilding of any kind apart from a concession on nutrient neutrality rules that have blocked new homes in some areas.

“There was disappointment if not surprise as the Budget confirmed plans to continue the freeze in Local Housing Allowance rates for another year despite rising rents”

Development seems certain to shrink instead, thanks to the housing market downturn and the government’s surrender to its backbenchers on planning.

And, needless to say, there was no hint of the sort of radical reform that might generate growth by shifting taxes from incomes to assets.

The Budget actually did the opposite, with a massive tax giveaway on pension contributions for the wealthy matched by a freeze in income tax thresholds for everyone else.

Finally, there was disappointment if not surprise as the Budget confirmed plans to continue the freeze in Local Housing Allowance rates for another year despite rising rents.

In a Westminster Hall debate that followed the Budget, MPs from across Britain lined up to outline the malign consequences for their constituencies.

With living standards still set to go through their biggest two-year decline since records began in the 1950s, the result will inevitably be increased rent arrears and – another sort of E – evictions.

Jules Birch, columnist, Inside Housing