CIH responds to 2025 Spring Statement

The Chancellor of the Exchequer, Rachel Reeves MP, delivered her Spring Statement to the House of Commons today (26 March). 

Responding to the announcements, Rachael Williamson, CIH interim director of policy, communications and public affairs, said: 

“We welcome the confirmation of the £2 billion top up to the Affordable Homes Programme at the Spring Statement, as well as the £20 million set aside to support the delivery of community-led housing and the £625 million boost to the construction workforce. These measures are both necessary and important, and show the government is continuing to take positive steps towards our shared ambitions on housing.

“However, the Office for Budget Responsibility's analysis shows that the government will struggle to meet its target of building 1.5 million homes without significant investment in social and affordable homes.* As we look towards the Spending Review in June, it is vital that government continues its work to develop a long-term successor to the Affordable Homes Programme that prioritises homes for social rent, and delivers the level of funding that is required to tackle soaring levels of homelessness. 

“Beyond housing, we share the concern of charities and consumer groups that cutting benefits will place more people into hardship. Housing costs remain high, especially for private renters, and next week energy bills will rise again. The cost of living continues to be a persistent challenge for those who have the least, and we need to see more support delivered through the welfare system for those who need it, not less."

* The OBR’s forecast of ‘net additions’ to the housing stock (the figure the government uses to assess progress towards its 1.5 million homes target) shows that there is still a gap to be filled. Over the five years 2025/26-2029/30, the OBR forecasts 1.26 million homes being built, an increase of 136,000 on its October forecast. While the OBR forecasts therefore show a further step towards the government’s target, the remaining gap of 240,000 extra homes needed across the UK will have to be filled by investment in social housing. However, it is worth noting that the OBR figure is UK wide, implying an even larger gap in England - of over 400,000 extra homes needed - than the projections suggest.