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Cambridgeshire's affordable homes scheme set to lose millions

Getty Images Construction workers build new houses on a housing development in EnglandGetty Images
The combined authority is supposed to deliver 2,000 homes by 2022 backed by £100m government devolution deal

The government will not continue to fund a £100m affordable housing scheme in Cambridgeshire after a minister said "insufficient progress" was made.

The scheme had been agreed as part of the 2017 devolution deal, with £45m of the funds still outstanding.

A minister told the Cambridgeshire and Peterborough Combined Authority "value for money" was below expectations.

Mayor James Palmer said the government had "not made it easy for us to deliver on their programme".

Terry Harris Julie Howell, Rod Cantrill, James PalmerTerry Harris
James Palmer said government delays, the impact of Covid-19 and a "toughening financial situation" had not helped the authority deliver its housing target

Luke Hall, minister for regional growth and local government, told the authority "the programme has made insufficient delivery progress and the value for money being achieved is below our expectations", according to the Local Democracy Reporting Service.

He said his department would not continue "to fund the programme on its current basis" but would consider making future funding available "subject to further work on the details".

The combined authority said it had so far received £55m.

Conservative mayor Mr Palmer defended the "innovative solutions" his authority attempted to put in place to provide affordable housing.

He highlighted that £40m of the existing funds provided had been loaned out, and that the authority was expecting returns on those loans which could then be put toward further affordable homes.

But he added government delays, the impact of Covid-19 and a "toughening financial situation" had all affected the authority's ability to deliver its housing target.

Cambridge Labour MP Daniel Zeichner described the situation as "a shambles", adding there was a "desperate need for affordable housing in Cambridgeshire and Peterborough".

The Liberal Democrat mayoral candidate Aidan Van de Weyer said it was "disastrous news for the people of Cambridgeshire and Peterborough", while the the Labour candidate, Nik Johnson, called for an investigation.

The minister's decision does not affect a separate £70m scheme paid to Cambridge City Council to build 500 new council homes.

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