Press release

Department for Communities and Local Government’s settlement at the Spending Review 2015

The Chancellor has published the results of the spending review, including details of the DCLG's budget over the course of this Parliament.

Image of money to reflect the financial settlement

The Spending Review and Autumn Statement delivers on the government’s priority to provide security to working people at every stage of their lives. It sets out a 4 year plan to fix the public finances, return the country to surplus and run a healthy economy that starts to pay down the debt. By ensuring Britain’s long term economic security, the government is able to spend £4 trillion on its priorities over the next 4 years.

For the Department for Communities and Local Government (DCLG) settlement this mean:

  • more than £20 billion of gross capital investment over the next 5 years to support housing and local growth
  • doubling the housing budget from 2018 to 2019 to deliver 400,000 new homes, the biggest affordable house building programme by a government since the 1970s
  • further spending on targeted initiatives that tackle homelessness and support the victims of domestic violence
  • overall resource savings of 29% by 2019 to 2020 through better financial management and further efficiency
£ billion 2015-16 baseline 2016-17 2017-18 2018-19 2019-20 2020-21 (1)
RDEL (2) 1.5 1.4 1.4 1.3 1.2  
CDEL 3.1 4.0 3.7 4.0 3.6 4.3
TDEL 4.6 5.4 5.1 5.3 4.7  

(1) 2020-21 Resource DEL departmental budgets have only been set for some departments. For the rest, these budgets will be set in full at the next Spending Review.

(2) In this table, Resource DEL excludes depreciation.

Security

The government will double the housing budget from 2018 to 2019 to deliver at least 400,000 affordable homes including 200,000 Starter Homes, 135,000 new Help to Buy Shared Ownership homes and 10,000 Rent to Buy homes. The government will also extend the Right to Buy scheme to Housing Association tenants, create a London Help to Buy scheme with a 40% equity loan, release enough public sector land for 160,000 homes, and provide £310 million of funding to deliver 15,000 homes at Ebbsfleet, the first garden city in the UK for over 100 years.

To protect the most vulnerable in society, the government will maintain current levels of spending on homelessness support services in real terms and provide £40 million for services for victims of domestic abuse, tripling the dedicated funding provided compared to the previous four years.

The government will continue to invest in the Troubled Families programme to delivering better outcomes for 400,000 families by 2020 with efficiencies found from central budgets.

From 2017 to 2018 the government will devolve and reform increased funding for managing temporary accommodation, giving local authorities more control and flexibility.

To reduce division and build cohesive communities, the government will maintain current levels of funding for community integration programmes. This funding will be targeted to support the recommendations of Louise Casey’s review of opportunity and integration in isolated and deprived communities. The government remains committed to preserving the memory of the Holocaust through the creation of a world leading memorial and learning centre.

Long-term investment

The government will support growth and job creation through a new wave of Enterprise Zones and extending the Coastal Communities Fund to 2020 to 2021.

Government will support areas to make the most of the economic opportunities created by HS2 and will continue to provide funding to support regeneration schemes at Bicester, Brent Cross, Ebbsfleet and the Queen Elizabeth Olympic Park.

Efficiency and reform

DCLG will deliver substantial savings through better financial management, enabling the removal of budgetary contingencies that are no longer required and further efficiencies. This includes a further 20% reduction in the department’s paybill, with total savings of £94 million from administration expenditure by 2019 to 2020.

DCLG will also work closely with the Valuation Office Agency to digitise the collection of local taxes, funded through up-front capital investment. This will generate efficiencies and support the move to full business rates retention.

DCLG will provide at least £74 million of funding for the Emergency Services Mobile Communications Programme, to ensure fire and rescue services can benefit from the latest mobile digital technology.

The government will consult on reforms to the New Homes Bonus, including means of sharpening the incentive to reward communities for additional homes. It will further consult on reducing the length of payments from 6 years to 4 years.

Devolution

DCLG will operate the £12 billion Local Growth Fund, which is more than double the size of equivalent funds in the last Parliament, and will empower local communities to deliver growth by giving them greater control of public spending, allowing them to target their own priorities.

DCLG will continue to oversee delivery of devolution deals agreed with city regions and other areas.

Secretary of State for Communities and Local Government, Greg Clark, said:

This One Nation Government is determined to build a million homes and give the chance for a million people to become homeowners. Today’s settlement represents the biggest, boldest and most ambitious plan for housing in a generation. This government has got the country building again and the measures announced today will give hundreds of thousands of families the opportunity to become home owners.

On top of building the homes our country needs across the nation we are devolving powers to local people who know their communities best to drive jobs, nurture businesses and improve local services.

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Published 25 November 2015