Budget to include £1bn for social and affordable housing

An important development from the financial markets: Budget to include £1bn for social and affordable housingImage source, Getty ImagesImage caption, Chancellor John Healey will present his first Budget on WednesdayByHarry Farley, Political correspondent, Ella Kipling and Patrick JacksonPublished25 October 2026More than £1bn for social and affordable housing in England will be provided in the Budget, taking funding for the government's 10-year homes programme past £40bn. Mayors and regional leaders across England are also expected to get greater powers and funding in Wednesday's announcement - with councils helped to borrow money from the government to invest in house-building through preferential interest rates. It is hoped the plans will give regional leaders more flexibility and authority over investment decisions.

Chancellor John Healey said English cities and regions would get the "right to decide their own future", while Prime Minister Andy Burnham said the plans were about shifting power to those "who know their communities best". The chancellor will also announce more support for small breweries, with the Treasury saying he wants "to turn the tide for our pint producers". Fresh support for breweries follows the news that 310 jobs are at risk at Marston's Brewery in Burton-upon-Trent.

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The issue was raised again at Prime Minister's Questions earlier this week, after owners Carlsberg Britvic revealed plans to shut down operations at the historic brewing site. Shadow chancellor Andrew Griffith has called for Healey to resign if he fails to set out how the UK will spend 3% of the UK's GDP on defence by 2030. What is the Budget and what could be in it?

Published32 minutes agoBetween quick wins and big dreams lies Burnham's biggest test Published1 day agoUnder the plans for the regions, an initial £285m in transitional seed funding will be allocated by the government next year to support mayors and local leaders - and reduce reliance on "fragmented bidding pots" in Whitehall, the Treasury said. The government will also confirm that it will work with mayors to design a new £1. 5bn borrowing facility from 2028, which would allow them to access capital needed to support local priorities.

The Treasury said this could be put towards new homes, bringing High Streets back to life, or improving transport links. Healey said: "Mayors and local leaders know what their communities need to grow, which is why we are giving them more money, more power and more capacity to get projects moving, build homes and make the right decisions for their areas. "Areas across the country which are not yet strategic authorities will be able to access a share of the £285m to "unlock projects which will contribute to growth in their areas".

The prime minister said: "I'm calling time on local leaders going cap in hand to Westminster. That is no way to run a country.

Economists are analysing what the news means for the markets.