More on this topicBudget: Rachel Reeves pledges funding for housing, HS2 and schoolsRachel Reeves outlined plans to rebuild Britain once again through economic certainty and investment in areas including housing, the creative industries and infrastructure in her 85-minute budget speech.That included government commitments to 5 billion in spending on housing, with 500 million for the 2021-26 Affordable Homes Programme. Reeves also outlined a five-year rent settlement for local authorities and housing associations, reform of Right to Buy receipts and 230 million to deal with homelessness.In his response to the budget, RIBA President Muyiwa Oki said the cash injection for the Affordable Homes Programme was desperately needed. However, he pointed out that the budget wouldnt house everyone who needed a home. AdvertisementOki said: Given the huge demand for housing, the 500 million top-up to the Affordable Homes Programme is desperately needed. But this pocket-sized sum isnt going to deliver a home for everybody who needs one, including the hundreds of thousands of people waiting for social housing.He cautioned against making housing a numbers game and called for well designed places and supporting infrastructure because, ultimately, we must create places where people want to live.Similar comments were made byJay Morton, director at Bell Phillips. She told the AJ: I also question whether the 500 million allocated for social housing will be enough to meet the demand and ensure these homes meet the highest standards of quality, as social housing should set a benchmark for the best we have.Morton added that the new government had bought stability to the housing sector [and] while some were cautious of the Budget, the ambition to build and improve planning processes is reassuring and will add to stability.Matthew Chamberlain, of Ayre Chamberlain Gaunt, told the AJ it was encouraging to have a government making housing a main priority with an emphasis on providing longer-term certainty that will, we hope, create the confidence that is needed to increase investment.AdvertisementChamberlain said government needed to take a broad view, however, to ensure infrastructure was in place to ensure homes are successfully delivered and businesses and communities can thriveCiting the recent collapse of ISG and the knock-on effects, he explained: We are 10 years into a scheme that will create 120 new homes, with another three to go, with a fair wind. This isnt a unique situation, but the factors that have caused this need urgently addressing.Schools and hospitals are also set to benefit from Labours first budget in 14 years, with 40 billion in tax rises contributing to 70 billion in capital spending in this parliament. That will mean 1.4 billion for 500 new schools and a pledge to rebuild some hospitals.Michael Woodford, director of London studio at White Arkitekter, said Reeves commitment to continuing the New Hospitals Programme was welcome but investment in the NHS estate was crucial for both health outcomes and the climate crisis.He told the AJ: The UKs healthcare system has been suffering from inefficient funding for too long [] We will be looking attentively at how the funding for the next financial year will be distributed, strongly encouraging the government to account for renovation and planning policies that will enable us to deliver modern, healthy hospitals for its patients, people and employees.Richard Risdon, managing director at Mott MacDonald for UK and Europe, responded to the budget by saying the biggest challenge to realising these infrastructure investment plans is still the people which he linked to the investment in new schools.Calling on the government to engage in training workers to deliver new schools, hospitals and infrastructure, Ridson said: Boosting funding for the schools rebuilding programme by 1.4 billion to target rebuilding 500 schools is critical to creating the right environment for our young people to thrive. However, it will take time for that young talent to come through into our sector and we urgently need government to work with us on the skills issue. I welcome the further commitment to Skills England in the Budget, as we cannot build this vital infrastructure without the right people.A 25 billion slice of the 40 billion in increased tax revenue will come from increased National Insurance contributions, Reeves announced.Stride Treglowns Pierre Wassenaar said: Whilst a hike in the cost of running the business is never ideal, we had already accounted for the increase in employers NI contributions one of the advantages of the Budget being so heavily trailed.Wassenaar continued that his practice was optimistic about the focus on encouraging investment and the willingness to change rules to do so, but added: We do also need to be aware of unintended consequences with respect to quality.>Oliver Goodhall, co-founding Partner at We Made That, responded to Reeves commitments by saying: As an employer, and someone who cares about the health of our nation, Im happy to pay more tax. Labours revenue-raising Trojan horses have been so heavily trailed I dont think there were any surprises left.Goodhall also backed Reeves commitment to millions in funding for life sciences and the creative industries by calling for intelligent investment in infrastructure that aligns with the Industrial Strategy outlining the creative industries as a key sector for growth, and fairness locked into the growth mission.He continued: The recasting of Reeves fiscal rules is welcome. 2024 has been like moving through treacle with so much uncertainty for public-sector clients. Weve now got to both escape the cycle of short-term thinking and simultaneously start delivering.Other major announcements made by Reeves included funding for rail improvements outside London and metro systems in Sheffield and Leeds-Bradford, and ensuring that HS2 will go to Euston. However, no funding was set aside for the Euston terminus itself.Responding to the government's commitment to Eustons HS2 arrival into central London, WW+P's Ali Mowahed told the AJ it was encouraging that the government has made the right decision to commit to funding the high-speed rail line to central London.Mowahed added: Questions as to whether Euston station remains the right solution should now be put to one side.CommentsPooja Agrawal, chief executive, Public PracticeWhile we welcome the governments announcement of hundreds of new planners, we are keen that this is used as an opportunity to bring the right skills to the right level of public sector decision-making, to prioritise the quality of places rather than just focusing on delivering 1.5m homes.I have always seen the definition of a public sector planner being quite broad. I would like to see these 300 planners being recruited not just for the development management process, but to take a more strategic role contributing to strategic planning, new towns, updating local plans and protecting the environment.Architects have the right skills to contribute to the new governments agenda by bringing their spatial understanding and imagination, communication and project management experience, and crucially, their passion for improving peoples lives.Jack Taylor, associate director, A is For ArchitectureIt is great to hear that the government has finally taken notice of the housing crisis that is troubling the UK and making provisions for more housing investment particularly affordable housing.However, crucially, is where and how you build which is often overlooked in the pursuit of profit and speed of delivery.It would be a catastrophe if most of the new housing stock ends up as endless suburban sprawl with little to no connection to urban life, the high-street, infrastructure or public transport. As an industry we should be ready to embrace alternative models of more compact developments, bringing people back to town centres.Ben Derbyshire, chair, HTA DesignAt HTA Design we have long argued that public investment in housing as infrastructure is the only effective means of tackling the crisis in affordability, as supported by our partnership with Architects Action for Affordable Housing (AA4AH). Done right, this investment should also reduce spending on temporary housing, contribute to mitigating the climate and ecological emergencies and create a platform for green growth.So, we are tentatively encouraged that the chancellor has modified the rules that govern debt incurred for infrastructure investment, provided a substantial slice of that goes towards council house building. According to the Institute for Government, a broader assessment of public assets would yield headroom in excess of 60 billion so by that measure she could, and we say should, have gone further. 5 billion on housing, of which 3.1 billion for social and affordable housing is welcome, but more is needed if we are to meet the shortage.And of course, the intended benefits will only emerge if new and renovated housing is effectively planned, designed and built. The chancellor has recognised this through recruiting hundreds of planning officers. But in order to boost and upskill local planning authority capacity the government should utilise the plethora of experts around to support this effort and give them the opportunity to contribute. As we know to our terrible cost, the downsides of poor investment are as great as the possible benefits if the investment is well spent. We and AA4AH stand ready.Andrew Leaver, director, tp bennett During the elections, the Labour Party stated it would deliver the biggest boost to affordable housing for a generation. The pledge of 500 million towards the governments affordable programme is a welcomed start in the delivery of additional social housing, without which there would be a significant shortfall. But I urge the government to commit to bringing its investment up 500 million towards a 11.5 billion programme is unlikely to meet the target of 180,000 affordable homes.I also question how this funding will be distributed to councils across the country without expecting local authorities to bid against each other in order to support their communities with such basic needs. So, while I support the AHP, these investments must be genuine and consider building the right types of homes: attainable, community-focused schemes and designed sustainably for a mix of tenures to address both the housing and climate crises. The government needs to maintain this focus and not derail before the next round of housing grant programme next spring.Miranda MacLaren, director, Orms and member of the New London Architecture housing expert panelThe announcement of an additional 500 million for affordable housing is welcome. This investment is a small step towards addressing the housing crisis and ensuring more and affordable homes are built for those in need. However, Id like to understand more about how this will be complemented by immediate measures to address the pressing issues within the private rental sector. High rents within poor-quality accommodation are a key driver in the current housing crisis and, without robust standards and enforcement, these problems will persist.Allowing social landlords to fix rent increases for a five-year period may provide some stability for tenants. However, we also need stronger regulations and funding to prevent evictions, improve the quality of shared housing, and ensure councils have the resources to enforce standards. Addressing these issues is essential to prevent homelessness and reduce the reliance on emergency and temporary accommodation.Additionally, it is good to see the small funding boost to council planning teams. Planning authorities require funds to support their residents in securing safe and long-term accommodation. Currently, there are sparse resources and a lack of joined-up thinking within planning and housing departments, which hampers their ability to make the necessary impact in their boroughs. While this funding boost is a step in the right direction, more substantial support is needed to ensure these teams can effectively serve their communities.Ali Mowahed, chief executive, WW+PWith regards to HS2, it's encouraging that the government has made the right decision to commit to funding the high-speed rail line to central London, questions as to whether Euston station remains the right solution should now be put to one side. It was always going to be very difficult to convince the private sector to fund this aspect of the transport network without enhancing the associated development potential. We're disappointed that there is still a lack of clarity around commitments to extend the benefits HS2 will provide to the UK's Northern cities; we maintain our belief in the transformative potential of sustainable transport investment. However, this will continues to be a missed opportunity as long as we regard connectivity and growth as isolated problems to solve. The budget lacked clarity around the Northern Powerhouse Rail programme in its entirety, which we believe can provide a step change in advancing connectivity across the UK, and can foster economic growth while enhancing sustainability; Rachel Reeves' commitment to the Transpennine Route Upgrade addresses only some aspects of this. We're pleased that the chancellor committed funding to other projects that will have meaningful impact to growth across the UK such as East West Rail, which unlocks a significant amount of new housing and employment. The challenge now is to ensure the committed programmes of investment maintain the UK's position as a world leader in design and innovation.Melanie Leech, chief executive, British Property FederationWith no concessions on the overall business rates burden, todays announcements on this are just robbing Peter to pay Paul. However, the chancellor has at least recognised the business rates system is broken and has signposted the direction towards a reformed system. In the meantime, recognition of the unsustainable burden on retail, leisure and hospitality sectors and measures to continue to support them are welcome, but the employer tax increases announced dont go far enough to provide our high streets with the protection they need.Measures to support the delivery of more homes are welcome but the chancellor knows that much more is needed if the government is to deliver on its 1.5 million homes pledge. The promised housing strategy needs to be much bolder and go much further. This includes unlocking the billions of pounds of investment into the build-to-rent sector, so it is particularly disappointing that Rachel Reeves did not take the opportunity to reverse the previous governments decision to abolish multiple dwellings relief announced in spring.Mark Braund, head of housing, BDPThe increase in funding for affordable and social housing is extremely encouraging for the future of the sector. We work tirelessly with councils and developers to unlock viable and underutilised land across the country to bring about housing that the country truly needs, and we hope this can be the catalyst for local authorities to push their plans forward.We know that the government has also pledged to create a series of new towns and we support the desire to create places that deliver infrastructure, offices and leisure facilities alongside new homes. Its fantastic to see a 56 million investment in Liverpool Central Docks identified by the chancellor. The Liverpool city region is one of the UKs most successful destinations and it is already acting as the test-bed for new, housing-led masterplans and development including our Hind Street development, which recently received more than 50 million in funding from Homes England and the Liverpool Combined Authority, helping unlock much needed housing in sustainable places. We are excited to see the impact of this funding alongside our approved plans in the Wirral and our development of the Liverpool Waterfront Regeneration Strategy.Stevan Tennant, managing director development, BallymoreIt was encouraging to see investment ring-fenced for affordable housing in todays budget. But, the government needs to go further and reconsider taxation measures to ensure that the residential property sector is incentivised, rather than stifled.The cost of building affordable housing in London excluding land is significantly higher than the value Registered Housing Providers are willing (or able) to pay for these homes. This effectively means affordable housing becomes a tax on development, and there is no financial incentive for a developer to build affordable housing.We are in danger of being distracted by conversations about a myriad of other factors that may impact on housing delivery, but at the core of the issue is viability, the costs of home ownership and funding and how it can be used. With costs rising dramatically and development values decreasing, many projects are simply no longer viable. Ultimately, we need to be building more homes across the country, at all levels of the market and all tenures, but developers cannot deliver them if its not financially viable to do so.Matilda Agace, senior policy and advocacy manager, Design CouncilWe welcome the focus on retrofit and repair with an extra 2 billion for school repair and an initial 3.4 million for home heat decarbonisation; with our carbon budgets tight, upgrading the buildings we have is key.It is good to see the extra investment in building affordable homes. If 1.5 million homes are going to be delivered within 1.5C climate commitments, it is crucial that central government funding is used to drive up the design quality and climate credentials of the homes we built. The budget re-confirmed the governments commitment in making buildings cleaner and cheaper to run as part of the UKs journey to net zero. However, there remains a significant policy gap on embodied carbon.While Rachel Reeves announced 1 billion for the aerospace sector and over 2 billion for the automotive sector, it was a shame to see no headline investment figure announced for the Governments other key growth sector the creative industries, where design and architecture sit.Shelagh Grant, chief executive, The Housing ForumThe Housing Forum welcomes today's announcements on funding for new housing. Our members from across the housing sector work together to increase the quality and supply of housing, including affordable housing. We know how badly these new homes are needed to address rising levels of homelessness and enable everyone to have a quality home. We are particularly pleased to see conformation of the Right to Buy discounts being reduced and councils given the full receipts to reinvest, as these are measures we have been calling for to give councils confidence to build and increase the supply of much-needed new homes.Muyiwa Oki, RIBA President Given the huge demand for housing, the 500 million top-up to the Affordable Homes Programme as part of todays Budget is desperately needed. But this pocket-sized sum isnt going to deliver a home for everybody who needs one, including the hundreds of thousands of people waiting for social housing.Alongside calling for next years Spending Review to boost the social housing pot, we urge the government to consider its overall approach to funding social homes. This includes exploring different models that reduce the net cost of delivery, such as that outlined in our report, Foundations for the Future.Fundamentally, housebuilding needs to be more than a numbers game. Places must be well-designed, well-connected, inclusive and accessible, which means ensuring sufficient infrastructure is developed alongside new homes. That means building on todays infrastructure announcements because, ultimately, we must create places where people want to live.Ben Marston, director, Jestico + Whiles and chair of the NLA Expert Panel on EducationAs the National Audit Office reported last year, our school estate has been deteriorating faster than the Department for Education has been able to refurbish or rebuild it, with very low numbers of schools being delivered on the Schools Rebuilding Programme. Progress has gone backwards the chancellor observed in her speech.The 21,600 schools in England form the backbone of our public sector estate, but a generation of post-war school buildings have reached the end of their design life. RAAC got a specific mention, given the publics unexpected familiarity with autoclaved aerated structures, but that is one issue of many afflicting the school estate school buildings not fit for our children, as the chancellor described them. Rebuilding, refurbishing, and decarbonising the existing estate into inclusive modern learning environments should be essential national renewal. It will never be enough, but the additional capital investment in our schools, alongside the increases in operational funding, particularly in vital SEND provision, is overdue and welcome.