This is one of four new-style Estimates day debates scheduled for 26/27 February. The new style debate provides the House with an opportunity to explore and scrutinise in more detail MHCLG’s spending plans in relation to homelessness.

This follows recent reports by the National Audit Office and the Public Accounts Committee on homelessness:

MHCLG’s supplementary estimate 2017-18, explanatory memorandum gives details of budget changes proposed by MHCLG in this year’s supplementary estimate.

These include the following proposed changes in relation to homelessness funding:

  • To reduce 2017-18 current spending on preventing homelessness from £265.8 million to £263.6 million
  • To remove the £25 million of capital funding previously allocated for reducing homelessness, which will now not be spent in 2017-18.

Overall, in its supplementary estimate, MHCLG plans to increase its 2017-18 capital budget by £484 million, including a net extra £404 million  for housing and planning.  The budget for Help to Buy equity loans is set to rise by £1.6 billion (+ 95%), from £1.7 billion to £3.3 billion; while capital spending on other housing programmes will reduce by £1.2 billion (- 40% ), from £3.0 billion to £1.8 billion.  As a result, around 2/3rds (65%) of MHCLG’s capital housing budget is expected  to be spent on the Help to Buy scheme this year. Because Treasury is providing additional funding for Help to Buy, MHCLG will be allowed to carry forward £478 million of its 2017-18 capital funding for housing programmes into future years.  

MHCLG also proposes an overall  reduction of £470 million in its resource budget.  £349 million is to be carried forward to future years.  

Related Library Briefing Papers:

Related posts