When we highlighted the key points for housing in the Spring Statement in March, we noted that all roads from there led to the Spending Review on 11 June. So, what was in the Spending Review for housing?
Would the cuts to welfare spending and increased employer taxes be worth the pain? Would the Chancellor, Rachel Reeves, make good on her promise to deliver a much larger capital investment programme to deliver the manifesto pledge of 1.5 million homes – with a focus on social and affordable housing? Would the government agree to a 10-year rent settlement in England of CPI+1% for five or 10 years, allowing landlords to plan and invest with certainty?
Well now we have our answer. And this is one of the rare occasions in my 25 years writing about housing that I can say the government has been as good as its word.
Sector certainty
The next Affordable Homes Programme in England will see £39bn invested over 10 years – that is nearly £4bn a year and almost double the current programme. Similarly, the rent settlement will be for a decade. The chancellor also announced access to additional private finance investment of £4.8bn for affordable housing, confirmed the £13.2bn Warm Homes programme to 2030 and unveiled a surprise consultation on restarting rent convergence.
Yes, these are headlines and, yes, we await the all-important detail. But the direction of travel is clear. The concerted sector lobbying has delivered what was hoped from the government – certainly as far as capital investment is concerned.
Housing comms next steps
So what next and what are the key reputation and comms considerations?
First, housing associations and local authorities now need to decide on how best they will participate in the government’s investment programmes and deliver for residents. Once that course is set it needs to be delivered on – and very obviously so.
Second, while there is political risk in not aligning with government objectives, there is also risk in going too far. Investment must continue to be balanced between existing and future residents. The requirement to manage expectations among residents, colleagues and stakeholders remains crucial. Clear and considered communications is at the heart of this.
Third, tell your stories – make sure your residents and key stakeholders know all about your achievements. Align with government aims where appropriate, but remember to focus on how you are using your experience, ingenuity, partnerships and financial clout to build on the certainty the government has created.
In her Spending Review speech Rachel Reeves said she was “renewing Britain” with the “biggest cash injection into social and affordable housing in 50 years”. In so doing, the Treasury hopes to be “turning the tide on the housing crisis in this country”.
The government knows that people around the UK need to feel a positive difference amid all this high-level bluster and political theatre. Figures out the day after the Spending Review report a continued sluggish economy – the government is desperate for this situation to improve. Housing providers have won the ear of ministers to help deliver as key partners. Let’s make the most of the opportunity.
Stuart Macdonald is Managing Director of See Media
To discuss how we can help tell your story in a way that connects with your key stakeholders contact hello@see-media.co.uk
