In a decisive step to tackle the UK’s housing crisis, Rachel Reeves, Britain’s first female Chancellor of the Exchequer, has announced a series of ambitious measures aimed at reviving the housing sector.
In her inaugural speech as Chancellor following Labour’s recent election victory, Reeves outlined her government’s commitment to building 1.5 million homes over the next five years, as promised in Labour’s election manifesto.
“It is not our job to abdicate our manifesto commitments,” Reeves stated. “We have been given that strong mandate. We are going to deliver on that mandate.”
Reeves detailed a comprehensive plan that includes the restoration of mandatory housing targets, the construction of affordable and social housing, and the lifting the ban on onshore wind farms. She also introduced a new taskforce to speed up stalled housing sites and support local authorities with 300 additional planning officers. The government also plans to review previously rejected planning applications that could benefit the economy and prioritize brownfield and greybelt land for development to meet housing targets.
Key takeaways from Reeves’ announcement include:
Mandatory objectives for housing construction: Reintroduction of targets to ensure steady progress in housing construction.
Build 1.5 million homes: aim to complete this ambitious goal by the end of the current parliament.
Ending the ban on onshore wind farms: Promoting sustainable energy as part of the housing strategy.
New task force: Accelerating the development of stalled housing construction sites.
Support from local governments: Addition of 300 planning officers across the country.
Assessing planning applications: Reassessment of previously rejected applications to stimulate economic growth.
Give priority to developing countries: Focusing on brownfield and gray belt areas to meet housing needs.
Reform of the planning system: Streamlining processes to facilitate infrastructure development.
Policy intentions for vital infrastructure: Establishment of future plans to support the housing and infrastructure sectors.
Industry responses
The announcement received a positive response from industry leaders who see it as a bold step towards economic growth and stability.
Stephen Phipson, CEO of Make UK, praised the government’s clear and proactive approach. “The industry will welcome such a bold statement of intent, which is a clear indication of a government that is off to a good start, especially in ensuring that key institutions are focused on driving economic growth.” , he said. . Phipson highlighted the need for a robust industrial strategy and tackling the skills crisis, especially through a review of the Apprentice Levy and the technical education system. He also highlighted the potential of modular homes built in British factories to meet housing targets.
Daniel Paterson, policy director at Make UK Modular, echoed these sentiments and expressed his enthusiasm to work with the government on the ambitious construction agenda. “The Labor Party has put in place a bold plan in the run-up to and during the election campaign and we welcome the Chancellor’s statement today on growth; where houses and building infrastructure are central,” says Paterson. He noted that restoring housing targets, new funding for planning officers and overhauling the planning system were overdue but welcome steps. Paterson also credited the planned consultation on the National Planning Policy Framework and the push for universal coverage for local plans as crucial to getting Britain building again.
Chancellor Rachel Reeves’ announcement marks a major commitment to tackling the UK’s housing needs and boosting economic growth. By setting ambitious housing targets, reforming planning systems and promoting collaboration between government and industry, Reeves aims to deliver on Labour’s election promises and create a more stable, prosperous future for Britain. The positive reception of these plans by the business community underlines the potential of these measures to drive substantial progress in the housing sector and beyond.