The UK government will spend more than £1bn more on social and affordable housing in England in Wednesday’s budget, taking its 10-year housing programme beyond £40bn.
The funding is part of a wider package designed to boost housing investment and give regional leaders more power over local development decisions.
The government is also likely to introduce measures to help councils fund housebuilding with cheaper borrowing and give mayors more flexibility on how they spend on local priorities.
Mayors are to be given extra cash and powers.
The plans mean the government will provide £285m transitional funding next year to help mayors and local leaders. Treasury said the funding is meant to cut dependence on separate competitive funding schemes administered by the central government.
Ministers will collaborate with mayors to create a new £1.5bn borrowing facility from 2028. It will help local authorities fund projects including new homes, better transport and high street renewal.
Areas that have not yet established strategic authorities will also be able to apply for a share of the first round of funding.
Chancellor John Healey said more local control would help mayors and regional leaders make investment decisions that reflect their communities’ needs.
Prime Minister Andy Burnham said local leaders would not have to bid against each other for funding from Westminster.
"More powers and resources will help regional authorities translate development plans into projects that work for local communities," said Claire Ward, chairwoman of the UK Mayors Network and mayor of the East Midlands.
London Mayor Sadiq Khan also cited potential infrastructure projects that could benefit from more flexible investment, including the proposed West London Orbital rail route, extensions to the Bakerloo Line and Docklands Light Railway and improvements to Stratford International Station.
Brewery support and defence spending in focus
The budget is also expected to include further help for small breweries after fears for jobs at risk at Marston’s historic brewery site in Burton-upon-Trent.
The proposed support comes at a time of wider pressure on the brewing industry and with the reported risk to 310 jobs in plans to close operations at the site.
Entrepreneurship adviser Alex Depledge, who is leaving the Treasury, has also criticised the government’s approach to start-ups. She said growing businesses should be more prominent in economic policy and get more support to expand in the UK.
Another issue the Chancellor will have to deal with before the budget is defence spending. The shadow chancellor, Andrew Griffith, has called for a clear plan to increase defence spending to 3 per cent of GDP by 2030.
Defence Secretary Wes Streeting said the previous Conservative government had failed to invest enough in the armed forces.
Wednesday’s budget is expected to set out the government’s spending priorities, including investment in housing and the devolution of more financial powers to England’s regions.
