Chancellor Rachel Reeves today delivered her first Spending Review to Parliament, setting out long-term departmental budgets and pledging to deliver “renewal” that will be felt in the everyday lives of working people across the UK.

Speaking in the House of Commons, Reeves said: “We are renewing Britain – but I know that too many people in too many parts of our country are yet to feel it.”

She described the Spending Review as a tool to deliver real change in jobs, public services, and communities, including on high streets that have suffered years of decline.

The Chancellor committed to growing the economy “so that working people are better off”, while also strengthening national security and the NHS.

HOUSING BOOST

In one of the most striking announcements of her statement, Reeves said the government would deliver the biggest cash injection into social and affordable housing in 50 years – including specific funding for homes at social rent. his move, which the Chancellor claimed was worth £39bn over the next decade, marks a significant policy shift following years of limited central government support for council housing.

Reeves also announced a loosening of infrastructure investment rules in a bid to unlock greater economic development.

She confirmed that £10 billion would be made available for financial investments, including through Homes England, in an effort to attract further private sector funding into housing and regeneration projects.

“This is about building not just homes, but stronger communities and opportunities,” she said.

The Spending Review outlines departmental allocations for the years ahead and is expected to underpin much of the government’s domestic agenda.

Tony Hall, head of business development, Saffron for Intermediaries, welcomed the pledged investment for housing: “Nearly a year into the Labour government’s term, and with the 1.5 million homes pledge looking increasingly hard to deliver, it’s really positive to see this level of investment going into affordable housing. A long-term funding commitment like this sends the right signals to developers, housing associations and lenders, and should give first-time buyers a better chance of finding a home they can actually afford.

“That said, funding is only part of the equation. The planning system remains one of the biggest blockers to delivery and, without proper reform, too many projects risk being left in limbo. If we’re serious about hitting the 1.5 million homes target, we need to look at all options on the table. Self- and custom-builds are just one example of where change could unlock real progress, but only if we make it quicker and easier to get viable developments off the ground.”

Nick Jones, mortgage sales and marketing director for Access FS, said: “It’s tempting to focus on the big-ticket announcements around housing – and there was certainly some good stuff in there on Homes England and #social housing.

“But while everyone’s dazzled by the sexy stuff, Angela Rayner’s been very publicly battling to protect day-to-day funding settlement for her department, the Ministry for Housing, Communities and Local Government (MHCLG). She has been right to. While that funding is not in the spotlight, cuts there could have a major knock-on effect for levels of resourcing in local government planning support.

“So, while it might not grab the headlines, I’m worried reductions in ​local government budgets could hobble planning functions. Planning delays and under-resourced local authorities have been holding back the UK’s property market for too long – and this could make the situation worse.”

More to follow…