Chancellor of the Exchequer Rachel Reeves has presented the Autumn Budget 2024, which marks the inaugural budget of the new Labour government in the UK.
The government outlined seven key areas as part of its growth strategy: maintaining economic and fiscal stability; enhancing investment, infrastructure, and planning; promoting regional growth; focusing on workforce development and skills; advancing industrial strategy and trade; fostering innovation; and achieving net-zero emissions.
The budget includes £40bn ($51.63bn) in tax increases to support these various government priorities.
The chancellor announced a government investment exceeding £5bn for housing initiatives in the coming year.
An additional £3bn in guarantees will be provided to support small house builders, and funding for the Affordable Homes Programme will increase to £3.1bn to facilitate the construction of thousands of new homes.
The government will also enhance stability for social housing providers by raising support rates by consumer price index plus 1% over the next five years.
Meanwhile, to improve energy efficiency and address fuel poverty, £3.4bn will be allocated to upgrade 350,000 homes through the Warm Homes Plan over the next three years.
Furthermore, Reeves revealed an increase in stamp duty for second-home buyers and landlords, raising the additional rate from 3% to 5%.
The recent budget has generated notable reactions in the construction sector.
Royal Institution of Chartered Surveyors (RICS) chief economist Simon Rubinsohn said: “While the increased commitment to the affordable homes programme is welcome, the OBR [Office for Budget Responsibility] remains unconvinced that the government can meet its objective of delivering 1.5 million new homes over the course of the parliament, even with planning reforms.
“Additionally, the increase in stamp duty on second homes may widen the gap between demand and supply in the private rental market, as highlighted in the RICS Residential Market Survey.”
British Property Federation chief executive Melanie Leech said: “The promised housing strategy needs to be much bolder and go much further.
"This includes unlocking the billions of pounds of investment into the build-to-rent sector, so it is particularly disappointing that Rachel Reeves did not take the opportunity to reverse the previous government’s decision to abolish multiple dwellings relief announced in spring.”
Royal Institute of British Architects president Muyiwa Oki said: “Given the huge demand for housing, the £500m top-up to the Affordable Homes Programme - as part of today’s budget - is desperately needed. But this pocket-sized sum isn’t going to deliver a home for everybody who needs one, including the hundreds of thousands of people waiting for social housing.
“Fundamentally, house building needs to be more than a numbers game. Places must be well-designed, well-connected, inclusive and accessible, which means ensuring sufficient infrastructure is developed alongside new homes. That means building on today’s infrastructure announcements - because, ultimately, we must create places where people want to live.”
