Spending Review “make or break” for housing target – HCLG Committee

June 5, 2025

The Spending Review is a “make or break” event for the government’s 1.5 million homes ambition, according to the chair of the Housing, Communities and Local Government Committee.

In a letter to the chancellor Rachel Reeves, the Committee’s chair Florence Eshalomi called for a “generational increase” in social and housing investment, expressing concerns over recent media reports that the Ministry of Housing, Communities and Local Government (MHCLG) could experience “significant cuts” to its budget in the spending round next week as an “unprotected” department.

“Whilst we understand the current pressures on the public finances will mean difficult policy decisions are needed, we also note the government’s unwavering commitment to deliver 1.5 million new homes during this parliament,” Eshalomi wrote.

She pointed out that this was a pledge the Labour government first made in its manifesto “and reiterated as a milestone of the government’s ‘Growth mission’ in its Plan for Change”.

She also stated that evidence to the Committee from across the housing sector showed the government would not reach its homes goal “if it relies on the private sector alone”.

Eshalomi noted that the UK last built more than 300,000 homes …

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