The government has announced an investment of £1bn to top up next year’s capital budgets for schools and housing.
Ahead of this week’s Budget, chancellor Rachel Reeves (pictured) said that it would add £500m to the final year of the 2021-26 Affordable Homes Programme.
In addition, planned investment in the School Building Programme will rise by £550m to £1.4bn in 2025/26.
Reeves said: “This government’s first Budget will set out how we will fix the foundations of the country. It will mean tough decisions, but also the start of a new chapter for Britain, by growing our economy through investing in our future to rebuild our schools, hospitals and broken roads.”
The chancellor said that the funding for housing would deliver up to 5,000 new “affordable social” homes.
Details of the government’s investment programme for the period starting from 2026 will be outlined at the Spending Review next year.
Rachael Williamson, head of policy and external affairs at the Chartered Institute of Housing, said: “The £500m top-up to the Affordable Homes Programme is essential for maintaining momentum and keeping the programme running in the immediate term, ahead of the new funding needed in the spring.”
Separately, Reeves announced an additional £128m to support the delivery of new housing-related projects:
- £56m for Liverpool Central Docks to support delivery of 2,000 homes along with office, retail, leisure, and hotel facilities in Liverpool’s former docklands.
- £25m to establish a new fund with Muse Places Ltd and Pension Insurance Corporation to deliver 3,000 energy-efficient new homes across the country, with a target of 100 per cent of these being affordable.
- £47m to local authorities to tackle pollution in rivers to support the delivery of an estimated 28,000 homes that cannot be built currently due to nutrient neutrality rules.
The funding for the School Building Programme is aimed at getting back on track to deliver the previous government’s unmet commitment to deliver 50 rebuilds a year by 2030.
Paul Whiteman, general secretary at school leaders’ union NAHT, said: “The £1.4bn announced for school buildings is helpful.
“However, there remains a significant shortfall in terms of what is needed to restore the school estate to a satisfactory condition. We would urge the Treasury to use the three year spending review next spring to commit to a major school rebuilding programme.”
