Select committee chair raises concern over claims MHCLG will face reduced funding as an ‘unprotected’ department

The government will only hit its 1.5 million homes target if it funds a “generational increase” in social housing, the chair of a select committee has warned in a letter to chancellor Rachel Reeves amid reports of possible funding cuts to affordable housing.

Florence Eshalomi said she is concerned about reports that the Ministry of Housing Communities and Local Government (MHCLG) may face “significant cuts to its budget” in the spending review next week as an unprotected department.

Eshalomi, chair of the housing, communities and local government committee, said: “The last time more than 300,000 homes were built in a single year in the UK was 1977. That year, more homes were built by local authorities than private enterprise.

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The Treasury is due to unveil details of its spending review next week

“Our committee believes that a generational increase in social and affordable housing investment is required if the government is to meet its 1.5 million target during this Parliament. The spending review 2025 is make or break for the 1.5 million target.”

A number of media outlets over the past couple of days have reported that unprotected departments, including MHCLG and Department for Energy Security and Net Zero could face cuts as the government attempts to stick to its fiscal rules.

According to the Times, “ministers find themselves locked in a battle for an ever-diminishing pool of resources” amid “tense negotiations” within Whitehall.

Esholami said: “We are deeply concerned to hear media reports in recent days that the MHCLG as an ‘unprotected’ department, may face significant cuts to its budget next week.

“While we understand the current pressures on the public finances will mean difficult policy decisions are needed, we also note the government’s unwavering commitment to deliver 1.5 million new homes during this parliament – a pledge first made in the Labour manifesto and reiterated as a milestone of the government’s ‘growth mission’ in its Plan for Change.”

The government is due to set out its long-awaited multi-year spending review next Wednesday (11 June).