Budget 2024: Southampton homeless charity 'really pleased'

Chancellor Rachel Reeves confirmed that councils will receive £1.3billion of essential services grant funding, £233million of which will be spent on tackling homelessness.

Society of St James (SSJ), a Hampshire homeless charity with houses in Southampton, Portsmouth and Rushmoor, was among those eagerly watching Labour’s first Budget in 14 years.

“It’s been stressful because we were holding out that homelessness would come up, and we're really pleased that it did,” said Tania Marsh, Chief Executive at Society of St James.

READ MORE: Rent in Southampton rises by 10 per cent this year in 'devastating blow'

A £500million investment into the Affordable Homes Programme will allow 5,000 new social homes to be built across the UK, supporting the government in their goal of building 1.5million homes this parliament.

This totals an investment of £5billion into housing across 2025-26.

Tania said: “This has been on the cards for a very long time.

“We do need to build and have more access to housing. As a housing association, the increase is really good because we can then be supported to buy more properties to supply the safe space for people.

“We need to look into repurposing and having a think about what we’ve got, we know we need significant housing to end homelessness.”

The Society of St James' office on Albert Road South, Southampton. (Image: Newsquest) Right to buy discounts are also being slashed, which the chancellor argues will ensure vital social housing is available to those who need it.

Tania also welcomed an increase in minimum wage from £11.44 to £12.21 for those over 21 years old, acknowledging that rent increases and the cost of living crisis are both things that play into making people homeless.

READ MORE: Armed police descend after report of man with a gun near B&Q

But since this new funding only lasts until 2026, SSJ called for longer term funding that lasts longer than the current government.

Tania said: “[The term of government] can be stifling but ending homelessness does not have to be about who is elected in government.

“It’s an all-party issue that needs to be involved. I don’t think there’s any reason why we can’t see any long-term commitment because it’s a cross party issue.

"We know we can end homelessness, but it's going to take longer than two years."

'Disappointing'

The MP for Eastleigh has said cuts to winter fuel payments for pensioners in the budget are 'incredibly disappointing'.

Liz Jarvis said: “It is incredibly disappointing to see this new government push ahead with cuts to the winter fuel allowance which will badly impact some of the most vulnerable pensioners in our community.

“This is a bitter blow for the many pensioners in Eastleigh who will now be left choosing between heating and eating this winter.

“I will continue to fight tooth and nail against these cuts that will harm people already struggling with the cost of living crisis.” 

She also took aim at the £2 bus fare cap rising to £3. She said: “Hiking bus fares to £3 is an unfair bus tax on people in Eastleigh.

“I know many people in communities like ours rely on buses to travel to work and go about their everyday lives. This is simply the wrong choice. If the government was serious about investing in the economy and tackling the cost of living crisis they would think again.”

'No magic formula'

Huw Miles, managing partner at Paris Smith has given his verdict on the Budget.

He said: "Today’s budget had been significantly leaked and, as a result, business owners were braced for impact.

"Employers will calculate how much the rise in NICS from April 2025 will cost them. Some sectors will be able to pass the additional cost on to customers, at least in part, which will inevitably have an impact on inflation.

"Other employers may have no choice but to limit pay increases for staff. There could be a material impact on staff who earn above the minimum wage, where employers have discretion, especially with the employment market having cooled in recent months. 

£Combined with increases to the minimum wage from April and extensions to workers’ rights such as unfair dismissal, there will be a double or even triple whammy felt in some areas.

"The Office for Budget Responsibility predicts five years of low growth in GDP between 2025 and 2029. CPI is forecast to remain broadly under control and close to the Bank of England target of two per cent over the same period.

"This should be an environment in which businesses can plan without fear, although conflict in many parts of the world remains a deep concern.

"However businesses do not exist in a vacuum - they are connected to the state and consumers. Consumer spending is the dominant force in the economy at about 63 per cent of GDP. If business owners are taxed, they will spend less as individuals. Their businesses will invest less. They may pay their staff less. Those staff will spend less. Tax receipts will be less.

"No one has yet found the magic formula on tax. This was not expected to be a budget for business and no one was surprised.”