New housing package ‘hugely welcome’ – London Councils
Over £200million has been announced to help tackle the homelessness crisis in the capital city.
Within the Autumn Budget, which was announced by on Wednesday, chancellor Rachel Reeves revealed £233million of extra funding will be given to local authorities to help address the current homelessness crisis.
The money couldn’t have come at a better time. According to figures from a Financial Times analyses one in every 200 households in the UK is experiencing homelessness. Though it is estimated that this statistic could be even higher.
Against this backdrop, in the run up to the Budget, boroughs in London highlighted the severe financial pressures they were facing – several were even at risk of bankruptcy. The latest statistics from London Councils show areas in the capital have seen a 28% real terms reduction in funding per Londoner since 2010 – the year of the great financial crash.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said: ‘With London’s homelessness emergency posing the biggest threat to council finances in the capital, these announcements are hugely welcome news.
‘Increasing investment in the Affordable Homes Programme and allowing councils to retain 100% of Right to Buy receipts will help boost the construction of much-needed social and affordable homes. Reducing the Right to Buy discounts will also better protect existing and
‘The government is right to recognise the importance of putting social housing finances on a sustainable footing and the proposal for a new five-year rent settlement is a positive step. London boroughs face a black hole of £700m in their social housing budgets over the next four years as the costs of maintenance, repairs, and vital safety improvements outpace boroughs’ rental income.
‘We will be making the case for a 10-year settlement in the forthcoming consultation, alongside a review of the existing debt settlement for Housing Revenue Accounts. These further support measures would ensure long-term stability and maximise boroughs’ ability to drive up housebuilding, which is so crucial to the government’s missions.’
Other key aspects mentioned in the Autumn Budget that concern London boroughs include:
- £600m in additional grant funding for social care
- More certainty on social rent level, with rents to rise by CPI+1% for five years
- £500m additional funding in the Affordable Homes Programme to boost housebuilding
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