Spring Statement 2018: Thousands of new affordable homes to be built across Britain, Philip Hammond reveals
Philip Hammond confirmed that London would get an extra £1.67billion to try and build 27,000 more low-cost homes, and that he is currently allocating £4.1billion to authorities across the country too
THOUSANDS of extra new homes will be built in London and across the country, Philip Hammond today, as ministers promised more cash to help.
In today's Spring Statement the Chancellor promised that the capital would get an extra £1.67billion for 27,000 affordable homes in the next five years.
And he promised that ministers could double financial support for small house builders to £220million.
Mr Hammond told MPs today that he was working with 44 areas around the country who have bidded for part of a £4.1billion fund to help build more homes nationwide - but we don't yet know exactly how many new homes will be built with the cash.
House prices have risen on average 5.2 per cent in the last year, figures confirmed today, but officials think that it will continue to slow down in the coming months.
Ministers announced last year that stamp duty would be
Today it was revealed that 60,000 people have benefited from that so far.
Last year ministers promised a total of £44billion over the next five years - to try and reach 300,000 new homes a year by 2025.
In the Spring Statement, Philip Hammond announced:
- The UK economy is growing faster than expected, with growth of 1.5 per cent forecast for 2018
- National debt is about to start falling as a share of the economy as the Government no longer borrows cash for day-to-day spending
- The economic gains will allow him to increase spending later this year
- Average wages will finally begin to rise above inflation by the autumn
- Ministers will consult on a new litter tax and provide relief for small firms
- Tech giants could face tax changes which will see them finally paying their fare share
House building slowed by lack of skilled labour, materials and money
NOT enough workers, a limited supply of building materials and a lack of money is holding back housebuilding in Britain, a new review has said.
Sir Oliver Letwin, who is looking into why it takes homes in Britain so long to get built, said today there were a number of reasons for it.
In a letter to Chancellor Philip Hammond and Housing Secretary Sajid Javid, he also pointed the finger at utility companies for being too slow to install vital supplies for new homes, and that there were not enough good transport links to support enough new homes.
And he said that a lack of competition over large sites meant that housebuilders held a lot of power and could "exercise control" over sales.
Sir Oliver also identified "supply constraints" which he said were restricting more affordable homes being built.
He will look into the impact of this further in the coming months.
Today Cllr John Fuller, Chairman of the District Councils’ Network, said: "We welcome today’s release of Sir Oliver Letwin’s interim update on the build-out review. If local councils are to be responsible for delivering housing in their area, central government must strengthen and support their negotiating power when dealing with developers and builders.”
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The Chancellor unveiled good news for the economy, promising "light at the end of the tunnel" - and hinting he will turn on the spending taps this year.
He blasted Labour "doom and gloom" as he announced the official budget watchdog has upgraded its estimates for growth.
Mr Hammond even expressed optimism about Brexit as he vowed Britain would be able to cut a good deal with Europe.
The Office for Budget Responsibility forecasts a falling deficit as well as the predicted rise in growth, prompting calls for an end to austerity after eight years.
Calling on the nation to do even better than predicted, the Chancellor said: "That’s the OBR’s forecast - but forecasts are made to be broken. As a nation we did it in 2017, and we should do it again."