In a crucial move to tackle the UK’s housing crisis, Rachel Reeves, the UK’s first female Chancellor of the Exchequer, has announced a series of ambitious measures aimed at revitalising the housing sector.
In her inaugural speech as Chancellor after 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.
“We do not intend to back away from our commitments set out in the election manifesto,” Reeves declared. “We have received this strong mandate. We will deliver on that mandate.”
Reeves has presented a comprehensive plan that includes restoring mandatory housing construction targets, building affordable housing and municipal housing, Lifting the ban on onshore wind farmsIn addition, it has introduced a new taskforce to speed up stalled housing sites and support local authorities with an additional 300 planning officers. The government also plans to review previously refused planning applications that could benefit the economy and prioritise brownfield and greyfield development to meet housing targets.
Key points in Reeves’ announcement include:
Mandatory housing construction targetsResetting targets to ensure steady progress in housing construction.
Build 1.5 million homesWe aim to complete this ambitious target by the end of the current parliament.
Ending the ban on onshore wind farmsPromoting sustainable energy as part of the housing strategy.
New Task ForceAccelerating the development of stalled residential sites.
Support for local authoritiesAdd 300 planning officers across the country.
Review of planning applicationsRe-evaluation of previously rejected applications to support economic growth.
Prioritize development landFocus on brown and grey areas to meet housing needs.
Planning system reform:Simplify processes to facilitate infrastructure development.
Policy Intentions for Critical InfrastructureDevelop future plans to support the housing and infrastructure sectors.
Industry Feedback
The announcement received positive feedback from industry leaders who viewed it as a bold step towards economic growth and stability.
Stephen Phipson, chief executive of Make UK, praised the government’s clear and proactive approach. “Industry will welcome such a bold statement of intent, which is a clear sign that the government has made real progress, particularly in ensuring that key businesses are seriously focused on driving economic growth,” he said. Phipson stressed the need for a strong industrial strategy and to tackle the skills crisis, particularly through a review of the apprentice levy and the technical education system. He also highlighted the potential of modular homes built in factories in Britain to meet housing targets.
Daniel Paterson, policy director at Make UK Modular, echoed these sentiments, saying he was keen to work with the government on its ambitious building agenda. “Labour set out a bold plan in the run-up to and during the election campaign and we welcome the Chancellor’s statement today on growth, making homebuilding and infrastructure central to this,” said Paterson. He noted that the reintroduction of housing targets, new funding for planning officers and reform of the planning system were overdue but welcomed the steps. Paterson also hailed the planned consultation on the National Planning Policy Framework and the push for comprehensive coverage of local plans as crucial to rebuilding Britain.
Chancellor Rachel Reeves’ announcement represents a major commitment to address the UK’s housing needs and stimulate economic growth. By setting ambitious housing targets, reforming planning systems and strengthening collaboration between government and industry, Reeves aims to deliver on Labour’s election promises and create a more stable and prosperous future for Britain. The positive reception these plans have received from the business community shows that these measures can deliver significant progress in housing and beyond.