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Fri October 30 2020

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HCA announces spending freeze and £230m of cuts

26 May 10 The Homes and Communities Agency has frozen spending on a number of key housing schemes, including Kickstart, after being told to cut spending by £230m.

The Homes and Communities Agency has frozen spending on a number of key housing schemes, including Kickstart, after being told to cut spending by £230m.

The move follows the announcement of £6.2bn of spending cuts by the Chancellor earlier this week.

The Department of Communities and Local Government, which the HCA reports into, has had its budget slashed by £780m, and it has passed on £230m of this to the agency.

The HCA will make the following cuts:

  • £100m from the National Affordable Housing Programme;
  • £50m from Kickstart Round Two;
  • £30m from its Gypsy and Traveller programme; and
  • £50m from housing market renewal programme.

The NAHP money had not been allocated to any schemes.

Bids for Kickstart are at an advanced stage, with £550m of bids were received for round two, and £214m-worth due for approval. A full list of these schemes can be viewed on the HCA website.

The 2010/11 Gypsy and Traveller programme has been scrapped.

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The Housing Market Renewal Programme allocations announced in December will be reduced.

In addition to these savings, further funding commitments will remain on hold until the emergency budget on 22 June.

The HCA, along with the CLG and its other arms length bodies, will also be expected to make efficiency savings of 10% in their running costs.

The Treasury has indicated that it will ‘re-cycle’ £170m of the £500m of Government savings back into the Agency to reinvest in social rented housing.

Sir Bob Kerslake, chief executive of the HCA, said: “This represents the HCA’s contribution to government saving on both programmes and efficiencies, and we will aim to implement these in a way that minimises impact.”

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