Tag: Housing and Communities

The press release issued by the Ministry of Housing, Communities and Local Government on 18 December 2024.

Provisional Local Government Finance Settlement published today will provide £69 billion for councils across the country.

£69 billion of funding will be injected into council budgets across England to help them drive forward the government’s Plan for Change through investment and reform and to fix the foundations of local government, ministers have announced today (Wednesday 18th December).

The provisional Local Government Finance Settlement will provide £69 billion for councils across the country, a real-terms increase of 3.5% from 2024-25, which includes a new emergency £600 million Recovery Grant, offering better value for money through the repurposing of grants to help support councils most in need and maximise every penny of public spending to ensure it delivers for working people.

And £3.7 billion of funding will be made available to social care authorities to support adult and children’s services through the Settlement. This includes £880 million for the Social Care Grant – an increase of £200 million compared to what was indicated last month, taking its total to £5.9 billion – which will support councils to deliver care for adults and children in their communities, helping to reduce pressure on the NHS.

No council will see a reduction in Core Spending Power. Places with a significant rural population will on average receive around a 5% increase in their Core Spending Power to ensure rural communities have the support they need. We are maintaining the previous government’s referendum threshold for council tax , which will be maintained at 3% with 2% for the adult social care precept to protect local taxpayers

And laying the groundwork for wider children’s social care reform, today an increase to the new Children’s Social Care Prevention Grant has been confirmed, which will be uplifted from £250m to £263 million at the final Settlement early next year. This is a step towards ensuring children get the best start to life as set out in our Plan for Change. This will fund a national rollout of Family Help, a preventative service at the core of children’s social care reform, and will make funding available to help ensure that children can stay with their families or in safe loving homes wherever possible.

This mission-led government is determined to bring growth to every corner of the country, and local councils are crucial in this journey to deliver the change communities need – from building the 1.5 million new homes, helping to grow their local economies, and delivering the strong local services communities rely on.

Deputy Prime Minister, Angela Rayner said:

Local leaders are central to our mission to deliver change for hard-working people in every corner of the country through our Plan for Change, and I know our councils are doing everything they can to stay afloat and provide for their communities day in day out.

We won’t take the easy option or shy away from the hard work needed to rebuild a more effective and efficient system. These kind of reforms won’t happen overnight, but we are determined to deliver fairer funding, ending postcode lotteries meaning everyone gets the support from public services they deserve.

Minister of State for Local Government and English Devolution, Jim McMahon said: 

We know councils are calling out for help which is why we have prioritised this vital increase in funding, but we must stop taxpayers’ money being thrown into a broken system.

As a former council leader I know too well that councils have suffered from short-term solutions. But we will fix this outdated system, turning to our partners in local government, working hand in hand to bring ambitious reform and do the long-term, necessary work to rebuild the foundations, and crucially, trust.

Alongside the additional money announced today, the government will be giving the sector a say on how we fundamentally fix the current funding system from 2026-27. By distributing public funding more fairly, based on an up-to-date assessment of need, we will deliver better value for money for taxpayers so that councils across the country can deliver high-quality services. This builds on the ‘Fair Funding Review’ carried out by the previous government, which highlighted the need for change but was never implemented. We will go further, ousting the resource-heavy bureaucracy of bidding for different funding pots

In 2026-27 the government will bring forward the first multi-year settlement in a decade to provide greater certainty and stability to councils and ensure that every penny of taxpayer cash provides value for money through a more streamlined and efficient delivery system.

The government is determined to make the tough decisions and fix the foundations of the local government sector, with skyrocketing demand on services and top-down Westminster-centric decision-making that has left local leaders struggling to deliver the public services communities need.

The need to restore transparency and accountability over how public money is spent is clear, which is why the government has been clearing the audit backlog and is carrying out a systematic overhaul of the broken local audit system. Local audit should be the bedrock of local accountability and transparency, of trust and confidence in councils to spend taxpayer money wisely. The strategy for overhauling local audit, published today, sets out a range of measures for rebuilding the system including, as announced in the English Devolution White Paperthis week, the creation the Local Audit Office. This will streamline, simplify and bring the different functions in the current system together. It will be proportionate and do only what its name says – we are not recreating the bloated Audit Commission.

And as part of a determination to ensure that local government throughout the country is fit, legal and decent, today a ten-week consultation has launched on strengthening the Standards and Conduct Framework in England. Views are being sought on a range of proposals including mandating a model code of conduct, strengthening the investigation processes for code of conduct breaches, and introducing the sanction of suspension.

By getting councils back on their feet and giving local leaders more control, stability and certainty over their spending we will deliver better services for taxpayers and boost local economies. Equipping and empowering councils with new Social Care funding will help reduce the strain on the NHS and ensure every child in Britain gets the best start in life as part of our Plan for Change.

Further information

Further details on all of the above, including allocations for individual councils and our consultation document, can be found on the provisional local government finance settlement page 2025-26 here.

The government’s consultation on funding reform from 2026-27 can be found here.

Core Spending Power is a measure of the resources available to local authorities to fund service delivery. It sets out the money that has been made available to councils through the local government finance settlement.

The provisional local government finance settlement includes:

• A total funding package worth £69 billion funding for councils in England in 2025-26, including:
• A new £600 million Recovery Grant for areas most in need;
• £880 million uplift to the Social Care Grant;
• A new £250 million Children’s Social Care Prevention Grant, which will be uplifted at the final Settlement to £263 million.

The government confirmed it will provide £515m of funding at the final local government finance settlement to support to local government meet the increased costs of directly employed staff arising from changes to employer National Insurance Contribution (NICs).

The previous government’s referendum threshold for council tax will be maintained at 3% with 2% for the adult social care precept to protect local taxpayers.

Several grants including the Rural Services Delivery Grant and the Services Grant will be repurposed. The government will ensure the impact of rurality on the cost of service delivery and demand is reflected in the public consultation next year. Places with a significant rural population will still on average receive around a 5% increase in their Core Spending Power. No council will see a reduction.

Councils will also receive over £1 billion in total through the Extended Producer Responsibility for Packing scheme (pEPR) which will cover the existing costs they incur for managing household packaging waste, provide additional funding for new legal duties, and support much needed investment in the waste and recycling industry.

The government will provide confirmation of the final local government finance settlement once the four-week consultation has closed and all responses have been considered in early 2025.

Minister McMahon’s full Written Ministerial Statement is available here.

Further information on local audit reform, is available here.

• Further information on the Local Government Standards and Conduct Framework consultation, is available here.

The full English Devolution White Paper can be found here.

The press release issued by the Ministry of Housing, Communities and Local Government on 18 December 2024.

Councils across England will receive almost £1 billion of new funding next year to tackle, reduce and prevent homelessness.

More people will be prevented from becoming homeless with the largest-ever investment in homelessness prevention services, thanks to swift government action to get the country back on track to tackle, reduce and prevent homelessness and rough sleeping.

Nearly £1 billion is being pumped into council budgets to help break the cycle of spiralling homelessness. More resources will be available for workers on the frontline who provide essential services to get rough sleepers off the street and into secure housing as well as seeing more homeless families out of temporary accommodation.

Councils will now be better equipped to step in early to stop households becoming homeless in the first place. This includes mediation with landlords or families to prevent evictions, help find new homes, and deposits to access private renting.

Local areas can also choose to channel resources into services including Housing First, which prioritises access to secure housing for people with histories of repeat homelessness and multiple disadvantage including drug and alcohol abuse. This will secure critical outreach staff to provide specialist services to help address substance abuse and offer life skills to widen employment opportunities.

This is alongside councils being able to continue funding that offers tailored support for prison leavers to access private rented homes and locally run programmes with new education and employment opportunities, as well as support groups to avoid them facing homelessness and readjust to life on the outside.

With the worst housing crisis in living memory, around 40% of homeless families are living in B&Bs or nightly-let accommodation, and the use of this emergency accommodation has doubled in three years. Many of these places lack basic facilities, leaving parents struggling to cook healthy meals for their children while councils bear the mounting financial strain.

Successive years of failure to invest in local preventative services has seen far too many homeless families forced into temporary accommodation for far too long, with a record number of 123,100 households including almost 160,000 children.

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said:

“Too many people have been failed by the system time and again.160,000 children face spending this Christmas without a stable place to call home. I am determined to break the cycle of spiralling homelessness and get back on track to ending it for good.

“This largest-ever investment marks a turning point, giving councils the tools they need to act quickly and put in place support for people to tackle, reduce and prevent homelessness. It’s time to turn the tide.

“This historic funding comes alongside our work developing a cross-government strategy back on track to end homelessness, pulling every lever of the state, to ensure that we deliver not just sticking plasters but a long-term plan.

“Through our Plan for Change I am determined to tackle the housing crisis we inherited head on, building the homes we need, delivering the biggest boost in social and affordable housing in a generation and ending no fault evictions.”

Minister for Homelessness, Rushanara Ali said:

“We have inherited the worst housing crisis in living memory that has left far too many families trapped in temporary accommodation with no end in sight and soaring numbers of people sleeping rough on our streets.

“This is the dire legacy we have inherited as a government, and we are fully determined to take immediate action. Our funding will not only support councils delivering vital services that meet the needs of their communities but also pave the way for our long-term plan to get us back on track to end homelessness once and for all.”

A new dedicated Inter-Ministerial Group, chaired by the Deputy Prime Minister, brings together ministers from across government to develop a long-term strategy working with mayors and councils across the country to get back on track to ending homelessness once and for all.

Next year’s funding will deliver three important steps in the government’s long-term plan to tackle homelessness:

• stopping households becoming homeless in the first place.
• addressing the growing use of B&Bs and nightly-let accommodation.
• streamlining funding structures to make it easier for councils to spend their cash.

The full breakdown of new funding includes the following:

• Over £633 million for the Homelessness Prevention Grant, a £192 million increase from this year, supporting councils to prevent homelessness and provide temporary accommodation where required for families who recently became homeless, for example, through eviction or fleeing domestic violence. This is allocated based on local pressures.
• £185.6 million for the Rough Sleeping Prevention and Recovery Grant, consolidating the main rough sleeping and single homelessness focused grants into a single pot of money. This means councils can better prioritise when providing warm beds and shelter for people at risk, or experiencing, rough sleeping.
• More than £37 million for the Rough Sleeping Accommodation Programme, providing ongoing support costs to help rough sleepers into longer term accommodation alongside specialist staff supporting their mental health and substance abuse problems to pave the way for job opportunities.
• £58.7 million for the Rough Sleeping Drug and Alcohol Treatment Grant to continue supporting evidence-based drug and alcohol treatment and support services.
• £10 million to the Changing Futures Programmes which offers long-term support for adults experiencing multiple disadvantage, including combinations of homelessness, substance misuse, mental health, domestic abuse.
• £7.6 million for Sector Support grants that will strengthen the capacity the voluntary sector with more staff, including StreetLink that encourages people to notify their authority if they’ve seen someone sleeping rough and what local services are available to provide immediate help into emergency accommodation.
• £5 million for Emergency Accommodation Reduction Pilots, to work with 20 local councils with the highest use of Bed and Breakfast accommodation for homeless families to put in place specialised plans to reduce the use of emergency accommodation, including B&Bs.

This funding is just one element of the government’s Plan for Change to fix the housing crisis, strengthen protections and rights for tenants, and deliver the biggest increase in social and affordable housebuilding in a generation.

Section 21 ‘no fault’ evictions, one of the leading causes of homelessness, will be abolished as part of the landmark Renters’ Rights Bill. This will give greater security to new and existing tenancies and empower tenants to rightly challenge poor conditions.

Last week the government published a new growth focused National Planning Policy Framework as part of the Plan for Change, giving councils greater powers to build more social homes alongside vital infrastructure such as GP surgeries, schools and shops.

This supports the ambition to deliver the biggest increase in social and affordable housing in a generation, with an extra £500 million for the Affordable Homes Programme to build tens of thousands of affordable homes across the country.

The government is also bringing forward overdue reforms to the Right to Buy scheme to reverse the decline in much needed council housing and better protect existing housing stock. Decisive action has already been taken to reduce maximum discounts and allow councils to retain all receipts from sales to scale up delivery to meet future housing need.

Councils already have greater flexibility to use Right to Buy receipts to build and buy more homes as well as an additional £450 million to secure and create homes for families at risk of homelessness.

This announcement comes as the government prepares to publish its provisional Local Government Financial Settlement before the end of the year.

Stakeholder comments

Local Government Association housing spokesperson, Cllr Adam Hug said:

“Homelessness is one the biggest and most urgent pressures facing councils as more and more people are turning to their local council for support. A record number of households are in temporary accommodation – this represents a personal tragedy for each one, as well as a significant cost for councils struggling to source temporary accommodation.

“Preventing people from becoming homeless in the first place is both humane and cost-effective. The new funding announced today will be a great help to councils as they seek to end homelessness, and will help to relieve some of the financial burden they are under.

“We look forward to collaborating with the Government as they develop their cross-government homelessness strategy. To be most effective, this will need to set out national commitments from each government department, monitor and report departments’ contributions, and ensure that local partners contribute to prevention activity and targets through local homelessness strategies.”

Chief Executive of Crisis, Matt Downie said:

“With homelessness at record levels, we’re delighted to see the government taking action to ensure councils have the necessary funding and the ability to use innovative approaches to tackle this crisis.

“Through our services we see the devastating impact being without a safe home has on people’s health, relationships and life chances. No one should have to spend their nights moving between night buses and no child should grow up in a B&B with nowhere to play or do their homework.

“We look forward to working with the government to deliver a bold and ambitious cross-departmental strategy to end all forms of homelessness, alongside delivering the levels of social homes needed to ensure everyone has a safe place to call home.”

Chief Executive of St Mungo’s, Emma Haddad said:

“We welcome the Government’s announcement that it will be investing nearly £1 billion funding for councils next year to tackle homelessness and rough sleeping.

“Earlier this year St Mungo’s, working with partner organisations and supporters, called on the Government to extend its funding for rough sleeping services. This vital funding had been due to end in March 2025, despite the number of people sleeping rough at a record high.

“We are pleased to be working with the Government on developing its new strategy to end homelessness for good. Crucially funding for homelessness and rough sleeping needs to be a long term commitment to support the delivery of strategic and joined up services, alongside a focus on prevention.”

The press release issued by the Ministry of Housing, Communities and Local Government on 17 December 2024.

Lyn Garner has today (17 December 2024) been appointed to the New Towns Taskforce. She will replace Eamonn Boylan who will stand down from the Taskforce ahead of starting his new role as interim Chief Executive of Homes England in January 2025.

As previously announced, Eamonn Boylan will start in his new role as interim Chief Executive of Homes England from 15 January 2025. Eamonn will therefore stand down as a member of the New Towns Taskforce ahead of this date.

The New Towns Taskforce is an independent advisory panel which has been established to support the government to deliver the next generation of new towns. To ensure that the Taskforce maintains its independence, Eamonn has decided to stand down as a member in early January 2025.

Eamonn has brought vital experience about large-scale regeneration projects to the Taskforce and has shaped early thinking on the delivery mechanisms required to ensure new towns are successful communities. He will continue to support the Taskforce’s work in his new role, ensuring that Homes England’s delivery expertise continues to be drawn upon in the coming months.

Today, the government has appointed Lyn Garner to the Taskforce. Lyn is a Director and Chair of Future of London, the outgoing Chief Executive of the London Legacy Development Corporation, and has been the Senior Professional Lead for Greater London Authority (GLA) Group Housing Delivery since 2022. Lyn has over 25 years of experience working in leadership positions across housing, regeneration and finance.

Lyn brings her extensive real-world large-scale delivery experience to the Taskforce. Her valuable expertise will inform the Taskforce’s recommendations on the mechanisms and reforms required to ensure the delivery of the next generation of New Towns.

The New Towns Taskforce continues to make rapid progress to present their recommendations to ministers by summer 2025. Since September 2024, the Taskforce have met regularly to discuss the role that our next generation of new towns can play in kickstarting national economic growth. The Taskforce also launched a call for evidence in November which invited local areas to submit opportunities for large developments.

The press release issued by the Ministry of Housing, Communities and Local Government on 16 December 2024.

Raft of new powers will enable Mayors to drive economic growth, raise living standards and deliver better services across England.

Mayors will get unprecedented powers to drive growth, turbocharge housebuilding and improve transport in a transformative ‘devolution revolution’.

Setting out its plan to give those with skin in the game the tools they need to make a difference, the government published its English Devolution White Paper today (16 December). It puts England’s regions centre stage in the government’s Plan for Change missions to grow the economy, deliver the 1.5 million homes and infrastructure we need, and boost opportunity across the country.

Under proposals set out in the White Paper, Mayors will take a more direct role in plans for their areas than ever before, equipped with a range of new powers across strategic planning, housing, transport and skills. And they will be handed the tools they need to deliver on the ambitious Plan for Change in their regions.

Mayors in Greater Manchester, the West Midlands, South Yorkshire, West Yorkshire, Liverpool City Region and the North East will be the first to receive new integrated funding settlements, covering housing, regeneration, local growth, transport, skills, retrofit and employment support.

The White Paper lays out an ambitious new devolution framework, hardwiring Mayors into the fabric of government in a new deal for local people, giving our communities a proper say over their own futures. It also sets out a strong preference to see Mayors in place across the whole of England – making it the default status for regions across England.

Devolution is a tried and tested model for delivering accountability and economic growth. But devolution in England lags behind other developed nations. The English Devolution Bill, which is expected next year, will change this.

With two new mayoral and six non-mayoral devolution agreements confirmed since the summer, devolution will now be extended and deepened across England, giving all communities the opportunity to take back control. The government’s ambitions are shared by communities across the country and it will shortly set out its Devolution Priority Programme aiming to deliver inaugural mayoral elections in May 2026. The Government has had productive discussions with Cheshire and Warrington, Norfolk and Suffolk, and others and will confirm places on the Priority Programme in January.

Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government Angela Rayner said:

“Devolution is about delivering fundamental change at every level. It’s about giving local leaders the tools – and the trust – they need to forge their areas’ futures.

“It’s about raising living standards, improving public services and building the homes we so desperately need – all key aspects of our Plan for Change. It cuts across every aspect of government.

“We have an economy that hoards potential and a politics that hoards power. So our devolution revolution will deliver the greatest transfer of power from Whitehall to our communities in a generation, empowering those communities to realise their potential. And nobody is more excited about it than I am.”

Key to this transformation will be the government’s ambition for all of England to have Strategic Authorities – larger than individual councils and covering the wider areas people recognise and work in. Many places already have the Combined Authorities that will serve this role. Elsewhere, the government will work at pace with areas that want to create new Authorities, and will also legislate to allow for the creation of Strategic Authorities where local leaders have, after due time has been allowed, not been able to make progress.

Minister of State for Local Government and English Devolution Jim McMahon said:

“At its core, this White Paper sets out how the Government will strengthen and widen the mayoral model of devolution across England. It will shift power, decision making and money away from Westminster as part of a completely new way of governing, equipping more mayors working hand in glove with confident and stable local councils with a stronger set of levers to drive growth in their communities.

“It will empower them through integrated funding settlements, a direct role in the rail network, greater control over strategic planning and housing funding and skills training, so that they can deliver tangible change on a local and regional level.

“To do this we will rebuild and reform local government as the foundation for devolution, a reset in the relationship between central and local government, and give communities stronger tools to shape the future of their local areas.”

The White Paper will give Mayors power over:

• Planning and housing, putting our regions at the centre of the drive to build 1.5 million homes in this Parliament;
• Transport, to drive a locally integrated transport network that truly works for their communities and supports local economic growth, with improved train services and better travel to and from rail stations, by bus, tram and active travel
• Skills and employment support to so everyone has the opportunities they deserve and can access good jobs;
• Local Growth Plans to accelerate regional growth and productivity, setting a long-term vision for the next decade, and a roadmap for how this will be achieved – driving the government’s central mission of economic growth and putting more money in people’s pockets
• Too often, Mayors’ hands are tied by Whitehall – even when it comes to allocating their own budgets. The government will create a clear and transparent route for all Mayoral Combined Authorities to receive an Integrated Settlement, so they can move resources between projects in line with local need.

The White Paper also lays out the government’s plans to rebuild local government after 14 years of mismanagement and decline. This means providing multi-year financial settlements, shifting to a fairer system which matches funding with need, and a proper partnership between central and local government. It also announces an ambitious programme of local government reorganisation, working with councils to create simpler and more stable structures, tackling waste, improving accountability with fewer local politicians, and ensuring better outcomes for local people through sustainable, high-quality public services.

The landmark English Devolution Bill will deliver these changes to the law to make the devolution framework a reality and ensure local leaders across the country have the levers they need to make a difference.

For more information:

Devolution has already been enacted or is underway in the following areas:

Existing MCA/MCCAs

• North East
• Tees Valley
• York & North Yorkshire
• West Yorkshire
• South Yorkshire
• Greater Manchester
• East Midlands
• Liverpool City Region
• West Midlands
• Cambridge & Peterborough
• Greater London
• West of England

MCA/MCCAs in the process of being established  (confirmed since election)

• Greater Lincolnshire
• Hull & East Yorkshire

Non-mayoral institutions in the process of being established  (confirmed since election)

• Lancashire
• Devon & Torbay

Single Local Authority non-mayoral agreements in the process of being established (confirmed since election)

• Cornwall
• Surrey
• Buckinghamshire
• Warwickshire

The press release issued by the Ministry of Housing, Communities and Local Government on 16 December 2024.

Landmark English Devolution White Paper set to unleash power from Whitehall back into local communities that know their areas best.

• Devolution Revolution to be set out in landmark English Devolution White Paper – unleashing power from Whitehall back into local communities that know their areas best
• Mayors will be equipped to drive growth and improve living standards as part of government’s Plan for Change
• Greater devolution is a key way to kickstart economic growth, put more money in people’s pockets and put politics back in the service of working people

Significant plans to make devolution the default setting across a range of government policy areas, as part of the English Devolution White Paper, will be announced today (16 December) by the Deputy Prime Minister.

In a speech to an audience of regional mayors, local government and business leaders, the Deputy Prime Minister will say that the proposals in the English Devolution White Paper will put England’s regions centre stage and deliver on the government’s mission to grow the economy and our milestone of building 1.5 million homes and will boost opportunity across the country.

Measures expected to be announced later today include plans for new powers for mayors across strategic planning – giving them the ability to guide infrastructure and development projects across areas, housing, transport and skills.

This is part of the government’s longstanding commitment to devolution – pushing more powers out of Westminster and into the hands of people with skin in the game, who know their areas best.

At a launch event later today Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government Angela Rayner, is expected to say:

“Our English Devolution White Paper will be a turning point when we finally see communities, people and places across England begin to take back control over the things that matter to them.

“When our proud towns and cities are once again given the powers they need to drive growth and raise living standards as part of our Plan for Change.

“It’s a plan for putting more money in people’s pockets, putting politics back in the service of working people and a plan for stability, investment and reform, not chaos, austerity and decline, that will deliver a decade of national renewal.

“Devolution will no longer be agreed at the whim of a Minister in Whitehall, but embedded in the fabric of the country, becoming the default position of government.”

The measures are expected to include proposals to create ‘strategic authorities’ across England, bringing together councils over areas that people live and work in, to avoid duplication and give our cities and regions a bigger voice.

The English Devolution White Paper has been anticipated following the government’s clear intentions to transfer power out of Whitehall. Since being in office, the government has already approved devolution deals in Greater Lincolnshire, Hull & East Yorkshire, Devon & Torbay, and Lancashire.

The full proposals will be set out in the white paper, due to be published in Parliament today.

The press release issued by the Ministry of Housing, Communities and Local Government on 15 December 2024.

A new approach to development and the environment will boost the number of homes being built.

• Measures will create a ‘win-win’ for nature and the economy, accelerating economic and environmental growth.
• Rules will focus on driving up environmental outcomes over rigid processes that block and delay development, with developers able to pay into a fund for improvements to nature as a quicker and simpler way of meeting their environmental obligations.

Measures to turbocharge housebuilding have been set out today (15 December) as part of wider proposals for the forthcoming Planning and Infrastructure Bill.  The Bill will play a key role in promoting economic growth, unlocking a new scale of delivery for housing and infrastructure.

Common sense changes to environmental rules will support the Government’s commitment to build 1.5 million homes and advance 150 major infrastructure project decisions, while also helping halt and reverse the decline of species and natural habitats.

A new Nature Restoration Fund would enable developers to meet their environmental obligations more quickly and with greater impact – accelerating the building of homes and improving the environment.

Currently developers may need to secure mitigation for environmental harm before being granted planning permission.

This adds cost, delays and can entirely block the housing and infrastructure our country needs – with rules too focused on preserving the status quo instead of supporting growth and charting a course to nature recovery.

Under these reforms, developers will instead be able to pay into the fund allowing building to proceed immediately – quicker, simpler, and more certain that the broken status quo. A delivery body, such as Natural England, will then take responsibility for securing positive environmental outcomes, for example, delivering a reduction in nutrient pollution affecting the water environment or securing habitats to increase the population of a protected species.

This represents a shift away from a broken system which has stifled development, growth and nature recovery for far too long – failing communities and the environment.

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said:

“Getting Britain building means stripping away unnecessary barriers to growth to deliver the homes that we so desperately need.

“For years, vital housing and infrastructure projects have been tied up in red tape leaving communities without the homes, infrastructure and jobs they need.

“Our Plan for Change will put an end to the status quo while restoring nature.  It’s win-win for development and our environment, including targeted reforms allowing us to use the economic benefits of growth to fund tangible and targeted action for nature’s recovery.”

Environment Secretary Steve Reed said:

We were elected on a mandate to get Britain building again and protect nature.

But the status quo is blocking the building of homes and failing to protect the environment.

These reforms will allow tens of thousands of homes to be built while protecting the natural environment we all depend on.”

The proposals set out three steps the government will take to help developers get building while delivering their environmental obligations in a more sensible and strategic way. This approach will mean developers don’t have to pay for individual site level assessments for the matters covered by the Nature Restoration Fund – which adds cost and delay – and will no longer have to deliver mitigation needed. A single payment will enable development to proceed. A delivery body will then take the actions needed to drive nature recovery at a strategic, not site-by-site, scale:

• Government will lead a single strategic assessment and delivery plan for an area – not an individual site – which will allow decisions to be made at an appropriate geographic scale. The current process is uncertain and costly, with assessments on issues such as nutrient neutrality requiring bespoke calculations and significant technical expertise at the level of each individual project. This also misses the opportunity to support the best outcomes for nature.
• A public delivery body will consider which actions are needed to address the environmental impact of development across an appropriate area and determine how much developers will pay into the Nature Restoration Fund. The delivery body will secure the actions funded by developers, removing the need for actions to be taken on a case by case basis.
• Contributions will be secured from developers to fully fund nature recovery actions. This would enable developers to meet certain environmental obligations through a single payment into the Nature Restoration Fund – which would streamline the process and maximise the impact of money spent on nature by directing it to real world action instead of paperwork and process.

The proposals are set out in a working paper, which seeks views from stakeholders including communities, housing and clean power developers, nature service providers and local authorities. Feedback from the working paper will inform the next stage of policy development.

Tony Juniper, Chair of Natural England, said:

It is evident that we need to take urgent action to address the worsening decline of nature, and we must also lean into the challenges posed by housing shortages.

We will continue to work with the Government to help deliver their plans – but the two key issues of today, nature and economic recovery, should not be pitted against one another, as we step up efforts to avoid losing what protected remnants of nature remain while also restoring some of what has gone.

Instead, we should consider the huge opportunities which can be unlocked through better strategic planning which considers environmental improvements, economic development and green spaces for public enjoyment on a landscape scale.

The government would use the Planning and Infrastructure Bill to introduce legislative changes to drive action at a strategic level which will provide certainty for both developers and the environment.

This will also establish a more efficient and effective way for Habitats Regulations and other environmental obligations to be discharged, pooling individual contributions to deliver the strategic interventions necessary to drive nature recovery.

Notes to editors

• This paper is the latest in a series of working papers on different aspects of planning reform, designed to inform further policy development in collaboration with the wider sector. Previous papers covered proposals for a brownfield passport and for the modernisation of planning committees:
  • Planning Reform Working Paper: Development and Nature Recovery – GOV.UK
  • https://www.gov.uk/government/publications/planning-reform-working-paper-brownfield-passport

The press release issued by the Ministry of Housing, Communities and Local Government on 13 December 2024.

The government has extended the existing Home Building Fund beyond March next year.

A financial support package of up to £700 million for small and medium-sized housebuilders will be up for grabs through the expansion of a significant government programme to boost economic growth and build tens of thousands of new homes.

The existing Home Building Fund for SMEs is being extended beyond March next year to secure millions of pounds worth of loans and investments for small housebuilding firms who would otherwise be unable to access lending elsewhere.

The Fund had been due to close to new business on 31 March next year, but the government has now committed to provide ongoing funding.

Providing a range of financial support, including direct loans and lending partnerships, the Fund is increasing the amount of cash available for smaller housebuilders so they can play a crucial role in the government’s Plan for Change to build 1.5 million new homes over five years. This will get more families onto the property ladder and create jobs in the areas most in need.

The extension will support the delivery of around 12,000 additional homes – on top of the 42,000 homes the Fund is already on track to deliver.

Housebuilders struggling to access the credit they need continues to be a key constraint in driving growth across the sector and today’s intervention will help remove these barriers to encourage more housebuilding and grow the economy.

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said:

“Smaller housebuilders have a critical role to play in our Plan for Change to help us build 1.5 million homes over five years and the government is fully committed to backing them to grow.

“Government loans are providing vital support to many housebuilders in the SME sector, but previous failures to provide ongoing funding meant the scheme had been set to shut its doors in March.

“They must be the bedrock of our plans. That is why I’m extending the fund so more of them can access the capital and investment needed to deliver thousands of new homes across the country and help us fix the housing crisis for good.”

The Fund is managed by the government’s housing and regeneration agency, Homes England, who have already provided development loans to hundreds of small and medium housebuilders up and down the country to build more homes and expand their businesses.

Chief Executive of Homes England, Peter Denton said:

“The Fund is playing a vital part in England’s housing and regeneration story. It is at the heart of unlocking opportunities and helping the market to thrive and diversify, which is essential to boost the creation of new, high-quality, sustainable homes that people want and need.

“The Fund’s extension brings certainty to the sector and will undoubtedly open doors for SMEs, who I would encourage to reach out to us, as part of a collective mission to ensure everyone in the country has a permanent place to live and thrive.”

Chief Executive of the Federation of Master Builders, Brian Berry said:

“The Government’s greater support for small house builders by extending the Fund is a positive step to help diversify the housing market.

“The last few years have posed a difficult set of financial challenges for the nation’s small house builders, so it will be vital that these various lending options can help kick start developments. Boosting the output from SME housebuilders is crucial to hit the Government’s target of delivering 1.5 million new homes in this Parliament.”

Previous recipients of the Fund include Kingswood Homes in Lancashire who have more than doubled their yearly housebuilding targets and the Bristol-based developer, PG Group, tripling the number of affordable homes available on a brownfield site for lower income families.

In addition to supporting SMEs, the Fund also helps unlock investment from pension funds and institutional investors, including the recently announced £25 million deal with Muse Places Limited and Pension Insurance Corportation to deliver 3,000 energy-efficient new homes, all of which are intended to be affordable.

This follows the £3 billion in additional government support for SMEs and the Build to Rent sector confirmed at the Budget, which will help deliver over 20,000 more homes through the expansion of existing housing guarantee schemes.

The extension of the Fund will also support the government’s overhaul of planning laws through a new growth focused National Planning Policy Framework that is reinstating new, mandatory housing targets for councils across England.

Further information

The current Home Building Fund is designed for housebuilders based in England that are struggling to access finance from traditional lenders. More information is available here.

Case studies to see how a development loan has benefitted other small and medium housebuilders can be found here.

The Budget recently confirmed existing housing guarantee schemes will receive £3 billion more in government support.

The press release issued by the Ministry of Housing, Communities and Local Government on 12 December 2024.

An overhaul of the planning system to accelerate housebuilding and deliver 1.5 million homes over this Parliament.

Hard working families locked out of owning their own home for far too long will benefit from government’s landmark planning changes.

Under the plans, councils will be told they must play their part to meet housing need by reaching a new ambitious combined target of 370,000 homes a year. This comes less than one week after the Prime Minister announced the Plan for Change that sets our milestone of delivering 1.5 million new homes over five years.

In a major boost for communities across the country, the government is today turbocharging growth with new, mandatory targets for councils to ramp up housebuilding across the country. The planning overhaul is set to tackle the chronic housing crisis once and for all and will mean hard graft at work will be rewarded with security at home.

Today’s changes tackle the dire inheritance faced by the government, in which 1.3 million households are on social housing waiting lists and a record number of households – including 160,000 children – are living in temporary accommodation.

Under new planning rules, updated via the National Planning Policy Framework (NPPF):

• Councils will be told to play their part to meet housing need, with new immediate mandatory housing targets for councils to ramp up housebuilding and deliver growth across the country putting more money in working people’s pockets.
• Areas with the highest unaffordability for housing and greatest potential for growth will see housebuilding targets increase, while stronger action will ensure councils adopt up-to-date local plans or develop new plans that work for their communities.
• A new common-sense approach will be introduced to the greenbelt. While remaining committed to a brownfield first approach, the updated NPPF will require councils to review their greenbelt boundaries to meet targets, identifying and prioritising lower quality ‘grey belt’ land.
• Any development on greenbelt must meet strict requirements, via the new ‘golden rules’, which require developers to provide the necessary infrastructure for local communities, such as nurseries, GP surgeries and transport, as well as a premium level of social and affordable housing.
• To further tackle the housing crisis, councils and developers will also need to give greater consideration to social rent when building new homes and local leaders have greater powers to build genuinely affordable homes for those who need them most.

The government has been clear that it supports builders not blockers, as it makes the necessary decisions to deliver for working people across the country.

Prime Minister Keir Starmer said:

“For far too long, working people graft hard but are denied the security of owning their own home. I know how important it is – our pebble dash semi meant everything to our family growing up. But with a generation of young people whose dream of homeownership feels like a distant reality, and record levels of homelessness, there’s no shying away from the housing crisis we have inherited.

“We owe it to those working families to take urgent action, and that is what this government is doing. Our Plan for Change will put builders not blockers first, overhaul the broken planning system and put roofs over the heads of working families and drive the growth that will put more money in people’s pockets.

“We’re taking immediate action to make the dream of homeownership a reality through delivering 1.5 million homes by the next parliament and rebuilding Britain to deliver for working people.”

Reform is desperately needed if we are to build 1.5 million homes. Under the current planning framework just under one third of local authorities have adopted a local plan within the last five years and the number of homes granted planning permission had also been allowed to fall to its lowest level in a decade.

That has to change. Following consultation, areas must commit to timetables for new plans within 12 weeks the updated NPPF or ministers will not hesitate to use their existing suite of intervention powers to ensure plans are put in place.

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said:

“From day one I have been open and honest about the scale of the housing crisis we have inherited. This mission-led government will not shy away from taking the bold and decisive action needed to fix it for good.

“We cannot shirk responsibility and leave over a million families on housing waiting lists and a generation locked out of home ownership. Our Plan for Change means overhauling planning to make the dream of a secure home a reality for working people.

“Today’s landmark overhaul will sweep away last year’s damaging changes and shake-up a broken planning system which caves into the blockers and obstructs the builders.

“I will not hesitate to do what it takes to build 1.5 million new homes over five years and deliver the biggest boost in social and affordable housebuilding in a generation.

”We must all do our bit and we must all do more. We expect every local area to adopt a plan to meet their housing need. The question is where the homes and local services people expect are built, not whether they are built at all.”

Reflecting our commitment to the plan-led system, meaning where and how new development is built through local plans, ministers will provide local authorities with three months in which to progress local plans that are currently in development, subject to conditions that catch those which significantly undershoot the new targets.

But the government is introducing a new requirement that where plans based on old targets are still in place from July 2026, councils will need to provide for an extra year’s supply of homes in their pipeline – six years instead of five.

Where they do not, the strengthened presumption in favour of sustainable development would apply alongside the existing safeguards in national policy around provision of affordable housing, design quality, and sustainability of location.

Brownfield land must continue to be the first port of call for any new development and the default answer when asked to build on brownfield should always be ‘yes’. The government is also exploring further action to support and expedite the development of brownfield land in urban areas through ‘brownfield passports’ with more details to be set out next year.

To support councils to update their local plans and review their current greenbelt land, areas will receive an additional £100 million of cash next year that can be used to hire more staff and consultants as well as more resources to carry out technical studies and site assessments. This is on top of bolstering local resources with increased planning fees to cover costs and an additional 300 planning officers, making sure they have the staff and capacity needed to approve homes for local people.

The new growth focused NPPF also includes requirements to ensure homes are high-quality and well-designed without stalling growth. The government has also committed to updating the National Design Guide and National Model Design Code in Spring next year.

On the NPPF consultation:

The government has published its full response to the National Planning Policy Framework consultation.

The new annual housing targets continue to total an ambitious 370,000 across England, with higher mandatory targets in those places facing the most acute affordability.

Drawing on over 10,000 responses to the consultation and extensive engagement across the housing sector, the NPPF published today contains a number of refinements to the proposals set out in the summer.

The government also consulted on increasing planning fees for householder applications and other applications, alongside allowing local authorities to set their own fees.

Eligible local planning authorities are invited to submit an Expression of Interest by 17 January 2025 to request a share of the £14.8 million grant funding, supporting them with local plan delivery and green belt reviews.

As part of its relentless focus to get Britain building again, the government has already:

• Launched a New Homes Accelerator to unblock thousands of homes stuck in the  planning system.
• Set up an independent New Towns Taskforce, as part of a long-term vision to create large-scale communities of at least 10,000 new homes each.
• Awarded £68 million to 54 local councils to unlock housing on brownfield sites.
• Awarded £47 million to seven councils to unlock homes stalled by nutrient neutrality rules.
• Announced an additional £3 billion in housing guarantees to help builders apply for more accessible loans from banks and lenders.
• Extended the existing Home Building Fund for next year providing up to £700 million of vital support to SME housebuilders, delivering an additional 12,000 new homes.

The government has published its first working paper for the Planning and Infrastructure Bill, seeking views from a range of planning, housing and local experts before finalising proposals details for planning committees.

This will be followed by a formal public consultation on these detailed proposals to coincide with the Bill’s introduction next year.

Golden rules:

• Brownfield first.
• Grey belt second.
• Affordable homes.
• Boost public services and infrastructure.
• Improve genuine green spaces.

The press release issued by the Ministry of Housing, Communities and Local Government on 28 November 2024.

Funding reform kickstarted to fix the foundations of local government and better use taxpayer cash.

Long overdue reforms to council funding to ensure it offers better value for money have been outlined today (28th November) alongside more money for councils to help fix the foundations of local government.

The government will launch a consultation next month on its long-term proposals to fundamentally improve the way the sector is funded, moving away from an outdated and inefficient approach – which has seen some councils increasing their level of reserves and others struggling to deliver services and balance budgets – and shifting to a fairer system which matches funding with need.

This major reform, which will be subject to extensive consultation with local leaders, will ensure public money is spent more efficiently on improving services local people rely on through a fairer system which builds on the lessons learned through the previous government’s review of Relative Needs and Resources, better known as the ‘Fair Funding Review’, which highlighted the problem of how councils are funded and the need for change but was delayed and never implemented.

It will be launched alongside a consultation on the Provisional Local Government Finance Settlement for 2025-26, which includes a new £600 million Recovery Grant for areas most in need, an increase to the Social Care Grant by £680 million, a new £250 million Children’s Social Care Prevention Grant and the repurposing of grants to offer better value for money for the taxpayer and deliver better outcomes for local people, including the most vulnerable.

Overall, local government is expected to receive a real-terms increase in Core Spending Power of around 3.2% and no council will see a reduction in this after taking account of any increase in council tax levels. On average, places with a significant rural population will receive an increase of around 5% in their Core Spending Power, and will be better off this year compared with 2024-2025.

Deputy Prime Minister Angela Rayner said:

For too long councils have been let down by an outdated and inefficient funding system which has led to public services creaking and taxpayers’ money not being spent efficiently.

Whilst there’s no magic wand to fix what we’ve inherited, we’re taking the necessary steps to fix the foundations of local government by creating a fairer system and ensuring every penny is spent on the services so many people rely on every day.

The £680m increase for the Social Care Grant will help local authorities address social care pressures, whilst the new £250m Children’s Social Care Prevention Grant will help ensure children stay with their families or in safe loving homes where possible as part of a planned overhaul of the system next year. Legislation will be brought forward to crack down on the profiteering of vulnerable children and ensure local government can deliver safe, loving homes for children in care.

The Budget also set out more than £4 billion of investment in local government – of which £1.3 billion will come through the Settlement – to build new homes, invest in Special Educational Needs and Disabilities and improve homelessness services, and tackle potholes.

On funding reform, further consultations are planned before the final proposals will be developed, published and again consulted on ahead of the provisional settlement for 2026-2027 – ensuring the views of local leaders are reflected, in another demonstration of the government’s push to reset relationships with councils.

Implementation of these reforms will take place alongside multi-year funding settlements, the first in 10 years come 2026-2027, allowing local authorities the certainty to plan and invest for the long-term. The number of funding pots will also be reduced to allow councils to have more flexibility to judge local priorities, to meet the needs of local people, and to decide how best to deliver on national priorities.

The Provisional Local Government Finance Settlement for 2025-2026 will further maintain the previous government’s referendum threshold for council tax at 3% with 2% for the adult social care precept, balancing the need between protecting local taxpayers who are still feeling the impact of the cost of living and funding local public services.

The government also confirmed it will: provide support to the public sector, including local government, to meet the increased costs of directly employed staff arising from changes to employer National Insurance Contribution (NICs); plans to merge grants and simplify funding; and a commitment to overhauling the local audit system and to hold talks with local government over reorganisation if appropriate.

Several grants including the Rural Services Delivery Grant and the Services Grant will be repurposed. The government will ensure the impact of rurality on the cost of service delivery and demand is reflected in the public consultation next year. Places with a significant rural population will still on average receive around a 5% increase in their Core Spending Power, which is a real terms increase. No council will see a reduction.

Councils will also receive over £1 billion in total through the Extended Producer Responsibility for Packing scheme (pEPR) which will cover the existing costs they incur for managing household packaging waste, provide additional funding for new legal duties, and support much needed investment in the waste and recycling industry. Provisional payment figures will be shared with councils by the end of November.

The press release issued by the Department of Housing, Communities and Local Government on 27 November 2024.

New regulations to remove a local connection requirement for veterans to access social housing.

Veterans will have greater access to social housing thanks to the removal of a local connection requirement made by the government today.

The new changes, made by the Housing Minister in Parliament today, exempt all former UK Armed Forces Veterans from rules that restrict access to social housing for those that do not have a connection to the local area. This will make sure veterans across the country have access to the housing support they need and can find a place to call home.

The changes apply to councils with local connection or residency tests determining who can currently qualify for social housing. This will ensure veterans cannot be unfairly penalised where such requirements are in place, recognising the unique challenges they face in trying to build up a connection in a specific local area.

Housing and Planning Minister, Matthew Pennycook said:

“Those who put their lives on the line in the service of their country should have access to the housing support they need – this government is making sure they do.

“We will continue to do all we can to ensure homes are there for heroes, as part of our commitment to delivering the biggest increase in social and affordable housebuilding in a generation.”

Minister for Veterans and People, Alistair Carns OBE MC MP said:

“This is a government that is committed to renewing the nation’s contract with those who serve and have served and today is an important step forward in delivering on our promise that homes will be there for heroes.

“Today’s action shows our government is delivering our manifesto commitment to strengthen support for our Armed Forces communities and to ensure veterans have access to the housing support they need.”

The Deputy Prime Minister has previously written to local councils reminding them of their obligation to prioritise veterans for social housing and the guidance is being updated to reflect these changes.

Wider government support is also in place to help more veterans into secure and permanent accommodation. This includes a further £3.5 million to the Reducing Veteran Homelessness Programme and Op FORTITUDE, which is the single referral pathway for veterans at risk of homelessness.

Alongside these changes, the government has already given councils greater flexibility to use Right to Buy receipts to build and buy more homes and provided an additional £450 million for councils to secure homes for families, including veterans, at risk of homelessness.

Government investment in housing will also increase to £5 billion for next year and this includes an extra £500 million in new funding for the Affordable Homes Programme to deliver tens of thousands of new affordable and social homes across the country.  In turn, supporting the government’s commitment of delivering 1.5 million homes by the next Parliament and generating economic growth.

Further information

• The government’s written ministerial statement confirming today’s changes is available here.
• The regulations will come into force on Wednesday 18 December.
• On 24 September, the Prime Minister also set out his ambition to improve access to social housing for young care leavers and victims of domestic abuse. Ministers will convene roundtables to explore the detail of these exemptions and bring forward further regulations in due course.