The Budget provides £1.5 billion in funding for the government's social and affordable housing programme, Chancellor John Healey announced on Wednesday 28 October, as part of measures to speed up housebuilding. The government is trying to lift building rates to support growth, after developers said building regulations and rising construction costs have held back new homes.

What the funding covers

To cut delays, biodiversity requirements will be removed for more brownfield sites, land previously built on or used for industry. Under current planning rules, builders must meet a 10% biodiversity net gain on brownfield sites to win approval. Healey also drew a line on building regulations, saying there would be no major changes to them in this parliament except where critical for safety, arguing that constant changes have slowed developers down.

Cutting brownfield red tape

The housing measures sit alongside a rise in the small business rates relief threshold for retail, hospitality and leisure firms, from £12,000 to £18,000, which the Chancellor said would mean half of shops, restaurants and gyms pay no business rates. Whether the housing funding and deregulation translate into faster completions will depend on planning decisions, construction capacity and demand for new homes, none of which a Budget announcement alone can guarantee.

Sources: Reuters and Hentons.