UK housing secretary develops plans for state-owned developer
8 reported
According to plans leaked to the Guardian, UK Housing Secretary Steve Reed has been developing proposals for a state-owned housing developer. The plans are not yet finalised and cannot be enacted before Prime Minister Keir Starmer steps down, following an order from the cabinet secretary that no major announcements should be made until after the new government takes office. The proposed developer would use government money currently allocated to Homes England to buy land and develop projects, hiring private companies for construction. It could also be granted borrowing powers, which would increase government debt. The plan would initially be piloted in a small area and would not be allowed to become so large it could undermine the private sector. The proposals come as many ministers are looking at policies that may appeal to the likely next prime minister, Andy Burnham, who has talked about greater public control over "the essentials of life."
What’s reported
Housing Secretary Steve Reed has been working on plans for a state-owned housing developer, according to leaked details.
The plans are not finalised and cannot be enacted before Starmer steps down.
The developer would use money from Homes England to buy land and develop projects, using private companies for construction.
It could be granted borrowing powers, which would push up government debt.
The plan would initially be piloted in a small area and would not be allowed to undermine the private sector.
The government reported a 26% increase in affordable homes started in the past 12 months compared to the previous year.
Builders began work on 130,170 homes in the past 12 months, half of what is needed on average to hit the government's target of 1.5m new houses.
Andy Burnham is likely to be named Labour leader on 17 July and take office as prime minister three days later.
Key figures
Steve Reed, Housing Secretary
Keir Starmer, Prime Minister
Andy Burnham, likely next prime minister
Sadiq Khan, London mayor
Mike Tapp, Home Office minister
Shabana Mahmood, Home Secretary
Sources: The Guardian
