Budget to include £1bn for social and affordable housing

The upcoming Budget will allocate more than £1 billion towards social and affordable housing in England, surpassing the £40 billion mark for the government's 10-year homes program. In addition to the housing funds, mayors and regional leaders across England are anticipated to receive increased powers and funding through Wednesday's announcement.

This move aims to provide local authorities with greater flexibility and authority over investment decisions. Chancellor John Healey stated that English cities and regions will have the right to determine their own future, while Prime Minister Andy Burnham emphasized the focus on shifting power to those who know their communities best.

The chancellor is also expected to unveil billions of pounds in new defense spending during the Budget. Specific details on the defense funding will be revealed in next year's spending review. However, shadow Chancellor Andrew Griffith has called for Healey's resignation if he fails to outline how the UK will spend 3% of its GDP on defense by 2030, aiming to meet NATO's target of 3.5% by 2035.

The Budget also includes transitional seed funding of £285 million for mayors and local leaders next year, along with a new £1.5 billion borrowing facility that will be confirmed for 2028. This facility could be used to support local priorities, including new housing, revitalizing high streets, and improving transport links. Healey emphasized that mayors and local leaders are best positioned to understand their communities' needs and make the right decisions for their areas.