Impact of Her Majesty’s Treasury Announcement on HCA Spending

Following the announcement by Her Majesty’s Treasury on spending cuts, the Homes and Communities Agency will be implementing a package of programme savings totalling £230 million. This is part of a wider package of programme savings being made by its sponsor department – Communities and Local Government – of £780 million pounds for the current financial year 2010/11. The HCA savings are made up of reductions to the following programme budgets:
National Affordable Housing Programme £100 million pounds
Kickstart Round 2 £50 million. There are currently bids totalling £214 million that have gone through the due diligence process. The sum available to fund Kickstart projects will be reduced by £50m. Total 2010/11 Kickstart (Round 1 and Round 2) budget = £420 million pounds.
Gypsy and Traveller programme - £30 million pounds
Housing Market Renewal - £50 million pounds
In addition to the programme savings outlined above, further commitments on the remaining uncommitted funds for the National Affordable Housing Programme, Kickstart Round 2 and Local Authority New Build (LANB) programmes will remain on hold, until Government funding decisions are detailed in the Chancellor’s 50 day budget on 22 June 2010. All affected stakeholders will be receiving correspondence from the HCA explaining the current situation and the implications. Read the full briefing including details of what projects are continuing in Kickstart and which LANB projects are on hold until the Budget on 22 June by clicking on the HCA logo below.