Chancellor John Healey is set to announce more than £1bn in new funding for social and affordable housing in England as part of his first Budget, to be delivered this Wednesday. This injection of capital will push the government’s total 10-year homes programme funding beyond the £40bn mark.
Devolution and Regional Investment
Beyond housing, the Budget will introduce a significant shift in how regional leaders manage local investment. The government plans to provide mayors and regional authorities with greater autonomy, supported by an initial £285m in "transitional seed funding" for the coming year. This move aims to reduce the reliance on fragmented Whitehall bidding processes, allowing local leaders to direct resources toward housing, transport, and high-street regeneration.
Additionally, the Treasury will work with mayors to design a new £1.5bn borrowing facility, scheduled to launch in 2028. This facility will offer preferential interest rates, enabling councils to borrow more effectively to support local infrastructure priorities.
Broader Economic Context
The Chancellor’s announcement comes amid wider debate regarding the government's economic strategy. While the Treasury has signaled support for small breweries, the lead-up to the Budget has faced challenges, including the resignation of entrepreneurship adviser Alex Depledge, who criticized the government's approach to supporting scale-up businesses.
Defence spending also remains a focal point. While reports suggest the Chancellor may unveil billions in new defence funding, he faces pressure from Shadow Chancellor Andrew Griffith to commit to a specific timeline for reaching 3% of GDP on defence spending by 2030. Defence Secretary Wes Streeting has defended the government's commitment, citing the need to address previous underinvestment.
