New funding to tackle the housing crisis
Chancellor Rachel Reeves has revealed a fresh £2 billion cash injection to support the construction of up to 18,000 social and affordable homes by 2029. The initiative aims to address the housing shortage and provide more options for working people across the country.
Focus on Manchester and Liverpool
Manchester and Liverpool are among the key areas targeted for the development of new homes, with thousands of affordable properties set to begin construction by March 2027. Ministers are calling on building firms to submit bids to help meet the demand for housing.
Government commitment to housing crisis
Housing Secretary Angela Rayner emphasized the importance of ensuring everyone has access to safe and affordable housing. The investment in new homes is part of a larger effort to address the challenges faced by individuals and families struggling to find suitable accommodation.
Fiscal challenges ahead
Despite the housing announcement, Chancellor Reeves is preparing to make tough decisions regarding government spending at the upcoming Spring Statement. With higher borrowing and lower growth projections, the focus is on balancing the books and potentially reducing jobs in the civil service.
Warnings of tax increases
Leading economist Paul Johnson has cautioned that taxes are at record levels and could continue to rise in the coming years. While no immediate tax changes are expected, there are concerns about the possibility of further tax hikes in the future, as the government grapples with financial challenges.
