Ministry of Housing, Communities and Local Government

“an average overall real terms increase in local authority core spending power”,

but only if local authorities increase council tax by the maximum allowable under legislation, passing the buck on to councils and raising the taxes we all pay in our local area.

If the Department is serious about ensuring everyone has access to an affordable home, we must end the decades of failure to build the homes we desperately need. That is why I welcome the Government’s ambition and commitment to deliver 1.5 million new homes during this Parliament, but evidence to our Select Committee from the sector has been clear: if the Government want to increase house building towards delivering more than 300,000 homes a year and reaching their target, social housing must be a substantial part of that mix. Ministers have said that the 1.5 million target is “stretching”, and the message we have heard from the sector is clear. In November, the Minister for Housing and Planning told us that, rather than a target of 300,000 homes per year over five years,

“The trajectory is an upward one”.

He said:

“The precise curve of that trajectory is dependent on factors like… the spending review settlement”.

We therefore warmly welcome the announcement in the spending review that the next affordable homes programme for 2026 onwards will be worth £39 billion. The estimate provides almost £400 million of uplift for the current affordable homes programme, which runs from 2021 to 2026. It is important that we continue to fund that if we are to reach the aim of 1.5 million new homes, but we need to start the building now, not towards the end of the decade. That is why I would be grateful to get some clarity from the Minister and the Department. Ministers have said they will publish a long-term housing strategy later this year, to set out how they will meet the 1.5 million target.

However, the financial strain councils are facing is almost entirely driven by high-cost, demand-led services, over which councils have little control. Those services, which include the provision of social care and homelessness support, are vital and often relied on by some of the most vulnerable people in our respective areas. The cost of social care has soared over recent years. In 2023-24, local authorities in England spent £20.5 billion on adult social care—19% of the total service net expenditure. If children’s social care is included in that figure, it is over 30% of the total budget.

A significant proportion of the 22% uplift in the estimate comes from new money—over £850 million—for adult social care grants. I welcome that much-needed injection of funding. There is also an uplift of £684 million for children’s social care, but that figure appears to be somewhat inflated by a budget transfer from the Department for Education. While that uplift for the Ministry is welcome, it still may not be enough.

I want to touch briefly on homelessness and temporary accommodation again. Our first inquiry as a Select Committee in this Parliament deliberately chose to look at the sharp end of the housing crisis, and we published reports on children in temporary accommodation and rough sleeping. We found that at the heart of the crisis are over 165,000 homeless children and their families, who are often voiceless, out of sight and stuck in completely unsuitable temporary accommodation. That is also damaging council finances. I have repeated the figure before and I will repeat it again: councils spent £2.29 billion on temporary accommodation in 2023-24, which amounts to London boroughs spending a combined total of £4 million per day on temporary accommodation. That is not sustainable.

The estimate includes over £260 million in funding for the rough sleeping prevention grant, and an uplift of £194 million in the homelessness prevention grant. Again, while these uplifts are a positive step in the right direction, my Committee heard that the restrictions placed on the homelessness prevention grant are quite troubling for some London councils. The new ringfencing introduced for 2025-26 requires almost 50% of that grant to be spent on that specifically. The homelessness situation in the capital is not deceasing and boroughs are spending almost 80% of that funding on temporary accommodation. The Committee urges the Government to engage with councils to solve the issue, to ensure that we do not see a reduction in provision and to address homelessness levels.

The current system also has small, short-term pots of funding. We urge the Department to reform those funding streams to ensure that there is long-term sustainable funding, instead of multiple, short-term funding pots.

My Committee is concerned that there is slow progress on the inter-ministerial group that is developing the strategy. We know that the Department plans to publish that “later this year”. This area may not be in the Minister’s direct remit, but will he be more specific about when we will get that strategy? Given that we cannot end homelessness without building the social homes we need, could the homelessness strategy be published at the same time as the long-term housing strategy?

There is so much to welcome in the estimate for 2025-26. The Government are moving in the right steps and the right directions, but we need to hear the detail of the affordable homes programme funding, especially if we are to deliver a boost to housing before the end of this Parliament. We need to ensure that our local authorities are on a stable footing to provide for the most vulnerable in our society, whether it is those who need adult social care, people sleeping rough or families at risk of homelessness. I welcome the funding commitments outlined in this estimate, but I urge the Government to go further and be more ambitious in their funding and financial support for these priority areas. I look forward to hearing the Minister’s response to my questions.

These are arbitrary, Whitehall-driven and centralised targets. I have long campaigned for development to happen on brownfield first, but that needs real funding for remediation, infrastructure and up-front costs. Under Andy Street’s leadership and a Conservative Government, we showed in the west midlands that we can remediate brownfield sites—look at the Caparo and Harvestime sites—and deliver for local people, but we need funding, which is lacking in this estimate. A failure to remediate is a failure to regenerate our towns, cities, communities and local economies. I have done it in less than three minutes, Madam Deputy Speaker.

In common with many Members, the other theme of my surgeries is the plight of many families who are coping with a child with special educational needs and disabilities who cannot access the services they need. Whether it is a lack of places in special schools or an inability to get the assessments they need to estimate their educational potential, too many young people are being let down. As such, given the huge deficits that have been accumulated in high needs blocks—in Oxfordshire, for example, the figure is £137 million—does the Minister recognise that councils simply cannot wait for an education or schools White Paper in the autumn to begin to understand how they will manage those figures in the future? Can he give some guidance to councils about the Government’s intentions for the next financial year, so that they can start to plan for what could otherwise be deeply destabilising cuts?

Finally, one highlight of local government is how it touches many aspects of our constituents’ lives and provides many diverse services. I call on the Minister to look at the public health grant and its role in providing for preventive healthcare, working closely with the other branches of the health system. We have figures out to 2026, I believe, but predictability about the future of that budget is a matter of huge importance.