Budget 2017: Hammond announces extra £2.7bn for Housing Infrastructure Fund

The government has committed to doubling the size of a key housing fund, intended to deliver infrastructure to ease the construction of new homes, to £5 billion, and pledged to create a new £220 million Clean Air Fund.

Housing: raft of funding announcements included in Budget
Housing: raft of funding announcements included in Budget

In June, the Department for Communities and Local Government (DCLG) launched the Housing Infrastructure Fund, a government capital grant programme of up to £2.3 billion, intended to help deliver up to 100,000 new homes in England.

Today, chancellor Philip Hammond pledged a further £2.7 billion to the fund.

Elsewhere, Budget documents revealed that the government will provide £1.1 billion for a new "Land Assembly Fund" to "enable Homes England to work alongside private developers to develop strategic sites, including new settlements and urban regeneration schemes".

The government will also provide a further £630 million through the National Productivity Investment Fund "to accelerate the building of homes on small, stalled sites, by funding on-site infrastructure and land remediation".

The Budget also provides for £400 million of loan funding "for estate regeneration to transform run-down neighbourhoods and provide new homes in high-demand areas".

Meanwhile, the Budget announced that the government will lift borrowing caps "for councils in areas of high affordability pressure, so they can build more council homes".

The documents said that "local authorities will be invited to bid for increases in their caps from 2019-20, up to a total of £1 billion by the end of 2021-22. The government will monitor how authorities respond to this opportunity, and consider whether any further action is needed".

Away from housing, the Budget also included a pledge for a new £220 million Clean Air Fund to support the National Air Quality Plan, published in July.

Hammond’s speech said that this would "provide support the implementation of local air quality plans".

The government is also to make "over £1 billion of discounted lending available to local authorities across the country to support high-value infrastructure projects".

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