Warning UK’s housing crisis will deepen if Reeves makes further cuts in spending review
Stay up to date with notifications from The Independent
Notifications can be managed in browser preferences.
Labour battles over housing budget as experts warn crisis will get worse
- Experts warn of a deepening of the UK’s housing crisis due to potential government spending cuts, with funds expected to be stretched by 2026.
- A struggle is reportedly occurring between the Treasury and housing minister Angela Rayner over budget plans, as Rachel Reeves prepares to outline spending plans until the next election.
- The Local Government Association reports that over half of councils are running deficits on their housing budgets, while homeless charities warn that new social housing supply cannot keep up with demand.
- Housing associations are struggling with the cumulative effects of austerity budgets, the Grenfell fire tragedy, and the economic impact of Brexit, Covid-19, and the war in Ukraine, leading to a shortage of funds for new projects.
- Homeless charities are calling for 90,000 new social housing homes to be built per year, while Labour MPs express concern that cuts to social housing will undermine the party's housing pledge and negatively impact councils.