National Insurance rise could endanger government’s housebuilding plans

The chief executive of Bradford-based Manningham Housing Association has welcomed confirmation of additional funding for affordable homes in today’s Budget but expressed concerns at the additional costs imposed on the housing sector through the increase in employers’ National Insurance contributions.

In a statement, Lee Bloomfield said:

“The Chancellor’s confirmation of £500 million of new funding for the Affordable Homes Programme is certainly a positive – increasing it to £3.1 billion – but, given the additional money will deliver only 5,000 of the 1.5 million new properties Ministers have committed to provide over the next five years, it is merely a drop in the metaphorical ocean.

“The promised 5-year social housing rent settlement will offer a degree of much-needed financial stability for housing associations, with the possibility of a 10-year settlement after a consultation process.

“However, the rise in employers’ National Insurance contributions will not only add to the costs faced by housing associations, it will also impact on all other elements of the supply chain which will be expected to deliver the many new homes so desperately required.

“I sincerely hope that the Chancellor has not made a decision she will come to regret.”