The government is weighing up plans to increase the amount of public money allocated to affordable housing in a move that would reduce developers’ contributions through planning gain.
Speaking in the House of Commons yesterday, prime minister Tony Blair strongly hinted that the government’s comprehensive spending review, which sets out public spending for the next three years, would allocate extra money to affordable housing.
The prime minister said that investment in housing had risen from £1.6bn to £4bn over the past six years, but added: “There is a great deal more to do. That is clearly an important matter in relation to the comprehensive spending review.”
It was feared that other priorities, such as transport and the NHS, would leave little public subsidy for housing.
Speaking at the Labour Party Conference in Brighton last year, planning minister Lord Falconer said that there was less of a case for putting public money into affordable housing than other areas because money could be provided by developers through planning obligations.
A study by Shelter last year revealed that there was a £1.3bn pa funding gap for affordable housing that needed to be filled by government subsidy.
But shadow DTLR secretary Theresa May said: “I doubt if there is any real intention to put a large some of public money into housing.
“The government doesnt appear to have a clear housing policy. They just throw a lot of balls in the air and see which ones get caught.”
EGi News 23/05/02
