Funding cut for £1.9bn of affordable housing

Grant Prior 14 years ago

Affordable housing schemes across the country worth £1.9bn were axed yesterday in the wake of Government spending cuts.

The Department for Communities and Local Government and the Homes and Communities Agency confirmed that 13 planned schemes in the pipeline via the Private Finance Initiative will not go ahead.

But the agency said another 13 housing schemes currently in procurement and worth over £1.2bn will continue to be supported through PFI during the next spending review period.

Another 25 housing schemes under contract will also continue to be supported.

The decision follows a review of housing PFI that could have seen support for all non-contractually committed schemes withdrawn.

HCA chief executive Pat Ritchie said: “I am pleased that despite having to make some tough decisions following the Spending Review, DCLG is able to commit support for these housing PFI schemes which have the potential to make a real difference to local communities.

“At the HCA we will now concentrate on helping Local Authorities maximise the impact of available funding, through our expertise on procurement and other technical services.

“We will also work with those councils which have received disappointing news today, to look at any ways in which their objectives might be supported through a non-PFI route.”

The 13 schemes currently in procurement will now be subject to a further rigorous review of value for money, with the outcome expected in December.

The full list of schemes in procurement which are continuing and the pipeline projects which have been axed:

    Pipeline projects axed

    Local Authority Project
    Birmingham City Council Lyndhurst Estate
    Cheshire East Council and Cheshire West and Chester Council Extra-Care Housing
    Camden London Borough Council Gospel Oak Regeneration
    Cornwall County Council Extra-Care and General Needs
    Hull City Council Orchard Park Estate
    Leeds City Council Lifetime Neighbourhoods
    Manchester City Council Collyhurst Estate
    Northampton Borough Council Eastfields and Thorplands
    Nottingham City Council Meadows Estate
    Portsmouth City Council Somerstown Estate
    Shropshire County Council Extra-Care Housing
    Southwark London Borough Council Aylesbury Estate
    Stoke-on-Trent City Council Suburban Estate

    Projects in procurement under fresh cost review

    Local Authority Project
    Derby City Council Social Rented Housing
    Kent County Council Excellent Homes for All
    Kirklees Metropolitan Borough Council Excellent Homes for Life
    Lambeth London Borough Council Myatts Field North
    Leeds City Council Little London
    Leeds City Council Beeston Hill & Holbeck
    Manchester City Council Brunswick Estate
    North Tyneside Metropolitan Borough Council Older People Homes for the Future
    Oldham Metropolitan Borough Council Gateways to Oldham
    Salford City Council Pendleton Estate
    Stoke-on-Trent City Council Extra-Care Housing
    Wiltshire County Council Social Rented Housing
    Woking Borough Council Priority Homes

Latest news

Early bond release key to averting industry surety crisis

Contractors must put pressure on clients to release bonds promptly
18 hours ago

Over 1000 building safety cladding retrofits completed

25% of safety retrofits finished seven years after Grenfell disaster
18 hours ago

Steel import delays make Rangers miss kick-off

Construction work at Ibrox will not be finished by start of next season
1 day ago

Lidl looking for new contractors for store building plans

Sign up for events in Newcastle, Glasgow, Birmingham and Southampton
18 hours ago

Utility firm GTC revs up for ground source heat pump era

Contractor and heat pump maker strikes ground-breaking deal
18 hours ago

Amey switches kit supplier to Speedy from HSS

New plant and equipment hire deal worth £25m a year
2 days ago

Clients under spotlight after bond bombshell

Contractors call for action to avoid project delays
2 days ago

M&E specialist Lorne Stewart falls into the red

Parent group suffers £2.8m loss in face of cost inflation and insolvencies
2 days ago

Four men rushed to hospital after site accident

Eye-witnesses report a wall was knocked over on Edinburgh site
2 days ago

World’s tallest scissor lift set for UK sites

Hire Safe Solutions partners with Dingli to supply lift with working height of 37 metres
2 days ago

Barhale wins £36m East London sewer remediation

Northern Outfall Sewer in West Ham runs above railway lines in the city
2 days ago

Weston Homes thumbs-up for £220m Essex homes scheme

Colchester 600-home Viridis scheme gains outline consent
2 days ago

Balfour seals £192m deal for trio of Scottish substations

Work to start this summer to enhance electrical transmission in Argyll
3 days ago

Construction bond bombshell as major player quits market

QBE currently provides cover for 20 of the industry's 30 biggest contractors
3 days ago

United Utilities names another 18 winners for £2.7bn water spend

Water giant cuts out large management contractors in latest spending round
3 days ago

Green light for £130m Dundee Eden project

Former gasholder site to be transformed into green house
3 days ago

Four tower scheme in Glasgow gets green light

Go-ahead for major mixed-use scheme at Central Quay
3 days ago

‘Green collar’ construction workers earning £134,000

Cost consultant T&T says insulation and heat pump trades earning £70 an hour in London
3 days ago

£65m Trafford Waters resi blocks approved

X1 Developments plans over 200 homes in 13- and 8-storey blocks
3 days ago

Over 100 firms win £1.5bn ICN housing framework

Great Places Housing Group names key partners for new homes programme
4 days ago

Steelwork firm went down owing £4.5m to suppliers

Subcontractors left holding unpaid invoices from SH Structures
4 days ago

Scottish civils firm to buy stake in piling specialist

Advance Construction in talks for 25% stake in Northern Piling Ltd
4 days ago

RSK secures £500m for fresh acquisitions spree

Acquisitive group aims to buy another 200 businesses by 2030
4 days ago

Beal Homes gets green light for £105m Humber scheme

Work to start on more than 500 homes in North East Lincolnshire
4 days ago

RED wins £20m East London office refurb

Grade II listed Victorian building to be upgraded to Cat A offices
4 days ago

Employee-owned Neilcott staff share £250,000 payout

Employee-owned building contractor sales jump 38% to £139m
5 days ago

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
1 week ago

Race for £800m South West Wales framework

Up to 16 firms face fight to renew spots on regional contractors framework
5 days ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
1 week ago

South East expansion paying off for Meldrum Group

Turnover up to £55m as North East based contractor expands national coverage
5 days ago

Contractor services