Balls says earmarking money to fund housing pledge will be a priority

Ed Balls last night promised to prioritise earmarking billions of pounds to fund Labour’s pledge to build 200,000 homes a year by 2020. Speaking with Telegraph journalist Mary Riddell at an event organised by Progress, Balls said:

“We are not going to going to come forward with proposals for more spending paid for by new borrowing, but I think we can still make a real step forward to reach the 200,000 number by the end of the decade. Within the overall capital allocation, we will increase the priority compared to George Osborne’s plans for housing.

“That will ensure enough funds for council and affordable housing. If we increase the priority for housing in the overall capital settlement, I think we will be able to show without the need to increase borrowing that we can implement the Lyons review and reach the 200,000 figure.”

The Lyons Review, which has been tasked with researching how Labour can deliver on its housing pledge, is expected to be published tomorrow. The report is likely to include proposals for the building of five new towns, and the ability for local authorities to share funds so that a council that has reached its spending cap for housing can apply for resources from one that has not. On the Lyons Review, Balls said:

”It will say there is a range of things we can do about new towns, new urban corporations, planning laws, making sure planning permissions are used, skills in the housing market but also a need for more investment”.

Keep an eye on LabourList for the first reaction to the Lyons Report’s findings tomorrow.