Section: Housing Finance
Budget Update
The Budget set out a number of measures which the Chancellor claims are aimed at delivering desperately needed homes, bolsteing the housing industry, getting the unemployed into jobs and training and provide much needed support to business.
Through a new funding package of over £1 billion, local authorities - working with their local partners - will have access to cash to support innovative local schemes to create additional jobs for unemployed people - particularly young people. Other funding will target support for stalled housing projects, kick-start new social housing schemes and boost efforts to reduce carbon emissions.
Two city region pilot schemes will give councils in Greater Manchester and Leeds new powers to unlock potential for economic growth. New devolved powers will enable them to make strategic decisions to reshape their economies to increase jobs and skills training, and deliver more on housing and infrastructure, in a way that reflects the needs of local communities and local job markets.
The Chancellor also announced a £900 million package of support to stimulate house-building and retain vital jobs and skills in the sector, provide further help for struggling home owners and first time buyers and help the industry's long-term recovery and sustainability.
Key elements of today's Budget include:
- Over£1 billion funding where councils, working with their partners, can bid for money to support local schemes to create additional jobs.
- Two new city-region partnerships will give Manchester and Leeds strategic powers to boost their economic growth.
- Local government will go further and faster to release efficiency savings - generating an additional £600 million in real savings that will be directly recycled back into local authorities' budgets to front line services and keeping Council Tax down.
- As part of Michael Bichard's Operational Efficiency Programme work, the Government is launching the Total Place initiative to examine public spending and local leadership in 13 local pilot areas to identify more savings and value for money.
- As a step towards the Total Place initiative, the Government has made arrangements to publish the first Local Spending Report.
- £400 million to kick-start stalled private sector house building by reducing up front costs and levering private finance.
- £100 million funding for local authorities to deliver more social homes.
- More protection for vulnerable households facing repossession by extending the Mortgage Rescue Scheme, so it is available for those in negative equity who would be eligible for assistance from councils.
- Schemes proposing high energy efficiency standards will be prioritised under the proposals. Also, over £100 million has been made available to support efforts to reduce carbon emissions by providing cavity wall insulation for existing social housing and community energy schemes which support housing development.
