Chancellor Rachel Reeves to bring back housebuilding targets

Authored by Faisal Islam and Daniel Thomas of BBC News

Is the chancellor supportive of building more housing in her community?

Rachel Reeves has committed to revitalizing the UK economy by reinstating mandatory housebuilding goals, aiming to stimulate construction and address the housing shortage.

In her first address as chancellor, Ms Reeves announced plans to revamp planning regulations and lift the restriction on onshore wind farms in England to accelerate the completion of major infrastructure projects.

She mentioned that the government is willing to make difficult decisions to improve the economy, stating that the UK has been falling behind other advanced countries for a long time.

She stated that the Labour party intends to construct 1.5 million dwellings in England during this parliamentary term. However, she emphasized that this does not mean approving all types of housing projects.

The real issue isn't if we desire growth, but instead, how determined are we? Are we ready to make tough decisions and stand up to those with a stake in the outcome?

Ex-bank economist Ms Reeves was named as chancellor last Friday, following Labour's big victory in the election.

Over the weekend, she and her team put in extra hours to prepare for a speech to business leaders and investors who have been hesitant to invest in Britain due to the political uncertainty following Brexit and the recent mini-budget announced by Liz Truss.

It is expected that her proposed projects will bring in billions of pounds in investments for eco-friendly industries and construction.

Ms Reeves tried to persuade investors who may have steered clear of the UK in the past few years by offering them assurances of stability.

"After 14 years, Britain now has a government that is strong and secure. This government values the importance of businesses, is looking to collaborate with them, and is ready to engage in business ventures," she said.

Addressing executives at the Department of Finance, Ms. Reeves stated:

Although acknowledging the difficult situation the party is facing, she mentioned that she had requested an evaluation of the country's financial situation and will share the findings before the summer recess. A comprehensive Budget will be scheduled for this fall.

"I have consistently cautioned that the winner of the general election would face the most challenging circumstances since the end of World War II," she stated.

"What I witnessed in the last three days has only reinforced my beliefs."

Ms Reeves stated that the proposed development would consist of a suitable combination of reasonably priced housing and residences available for social rental.

Deputy Prime Minister Angela Rayner will be in charge of this, using a proactive approach to ensure that it gets done, she explained.

Labour plans to reverse the regulations implemented by the Conservative party in 2015. These regulations made it possible for only a few objections to prevent the development of new onshore wind projects.

It is expected that many new turbines will be constructed as a result of this, however, Ms. Reeves acknowledged that there will be resistance to her infrastructure proposals.

"I am well aware of that, and we need to recognize that there are always compromises to be made," she stated.

Every project can have an impact on the environment, strain public services, and spark objections from community members. However, we refuse to stick to the same old way of thinking that automatically rejects any potential benefits due to possible drawbacks.

Liz Leffman, the head of the Liberal Democrat party in Oxfordshire County Council, stated on the BBC's World at One program that her party was not in favor of setting specific goals for building houses.

She stated that deciding where to build housing should be left to the local government officials who are familiar with their communities, and they should also take into account the opinions of the residents.

I hope that Rachel Reeves and the new Labour administration understand the significance of prioritizing infrastructure development. Neglecting this aspect can hinder productivity and make it challenging to entice individuals to purchase homes and seek employment in the region.

Supporters of mandatory construction goals argue that they are crucial in ensuring that local authorities meet the necessary housing quotas.

Critics, however, argue that the compulsory method has been attempted without success for many years and it may result in pushing for development on undeveloped land against the desires of the community.

The targets for building houses that were established by the Conservative government with Boris Johnson as the leader in 2019 were abandoned when Rishi Sunak took over as the prime minister due to opposition from members of the Conservative Party.

In the previous year, his administration still calculated that they had constructed one million fresh residences over the past five years.

Without a sudden influx of government funds, Labour will have to rely on the private sector to carry out their plans for building homes.

The Home Builders Federation is requesting increased assistance for individuals looking to purchase their first home, which may include reinstating a government program to help first-time buyers.

In the end, contractors are only able to construct if purchasers are able to make a purchase," he stated.

David Barnes, who leads the policy and public affairs team at the Chartered Institute of Building, said: "We are glad that the government wants to build 1.5 million homes over the next few years, but they need to understand that there are not enough skilled workers in the construction industry to make this happen."

Lizzie Bundred Woodward from CPRE, the charity that focuses on preserving the countryside, mentioned that they fully support the housing plans but are seeking more information on the specific locations for the new homes.

She mentioned that there are 1.2 million brownfield sites throughout the country that could be developed on instead of using up green space, based on the charity's research.

Additionally, there are approximately one million households that have received approval for construction since 2015 but have yet to be developed. We believe it is important for the government to focus on completing these projects before considering construction on protected green spaces.