Speaking on the Today Programme on 3rd October, the Chancellor Kwasi Kwarteng said that the Government will not uplift the public spending budgets announced in October 2021’s Comprehensive Spending Review (CSR) in line with current levels of inflation.
Kwarteng said “I think it’s a matter of good practice and really important that we stick within the envelope of the CSR [the Comprehensive Spending Review].”
Responding to the Chancellor’s statement, Rick Henderson, CEO at Homeless Link, the national membership charity for frontline homelessness organisations, said:
“During her campaign to become Prime Minister, Liz Truss committed herself to the Government’s target of ending rough sleeping in England by 2024. In order to hope to achieve this homelessness services must have the appropriate funding, not only to support people into accommodation, but to help them address broader issues such as physical and mental health.
“In recent months, our members from across the country, many of whom are commissioned and funded by local authorities, have been reporting that their finances are becoming more and more stretched due to rising costs. Clearly spending commitments made in October 2021, when inflation was less than half of what it is now, need to be adjusted to reflect this new environment.
“In a recent poll, over one in four of our members who responded said they feared service closures if the situation continues, while many are talking about scaling back their operations. If they’re forced into these actions, homelessness and rough sleeping will almost certainly rise as a result.”