Reeves to put £2bn into affordable housing to ‘sweeten the pill’ of cuts

Rachel Reeves and the deputy prime minister, Angela Rayner, will announce the housing funding on Tuesday and herald it as the ‘biggest boost to social and affordable housing in a generation’. Photograph: Cameron Smith/Getty Images

Rachel Reeves will plough £2bn into affordable housing in a bid to “sweeten the pill” of the spending cuts being announced at this week’s spring statement.

The chancellor made the surprise announcement of the new cash – a down payment on the June spending review – as the Treasury bids to demonstrate that it remains focused on investment, rather than cuts. It will fund 18,000 affordable and social homes, part of the target to build 1.5m homes over the course of the parliament.