Budget Spotlight:

The Autumn Budget was a critical moment for our sector. We’ve been waiting to see how the Government would build on the momentum created just five months ago, when the Chancellor made a historic £39bn investment in housing supply through the Social and Affordable Homes Programme (SAHP).  

Although publication of the SAHP prospectus earlier this month has begun to shape bid planning (the funding window opens in February 2026), this Budget is key because it influences how confidently providers – along with their supply chain – can move forward with plans. 

In light of the Chancellor’s announcements, that confidence will be mixed. There was disappointment that a decision on rent convergence – to equalise historical differences in rents and provide extra income for socials landlords – has been delayed until January 2026. However, an additional £1.5bn in capital investment to tackle fuel poverty through the Warm Homes Plan was widely welcomed, along with a £48m boost to recruit 350 more planners so the pace of house building can increase.  

It’s mixed news in other areas as costly landfill tax plans were scrapped, yet housing providers and contractors will now be hit by a rise in the minimum wage. 

These announcements underline the conflicting pressures facing the sector: welcome injections of funding and policy support on one hand, but rising costs and delayed decisions on the other.  

Crucially, they highlight the difficult balancing act facing social landlords as they steer through the most complex and volatile set of conditions I believe we’ve seen for years.  

Housing associations and councils are caught between two equally urgent priorities: investing heavily in existing homes so they are safe, warm, efficient and ready for the new Decent Homes Standard, while also trying to build the new housing our country so desperately needs.  

And we’re a long way off achieving that last goal. The latest figures show that new build housing completions in England have fallen to their lowest level for nearly a decade. Just 208,600 homes were built in England in 2024/25, down 6% from 221,409 the previous year.  

All of this is set against a backdrop of economic fragility and ongoing geopolitical shocks. High UK inflation, supply chain turbulence, rising costs and labour shortages have become the new norm for us all. 

It’s for these reasons that I believe strategic procurement matters more than ever. I’ve worked in public sector procurement – in councils, housing associations and now at PfH – for nearly 20 years. And I’ve seen the difference that can be made when procurement shifts from sourcing contracts to driving organisational performance. 

Let’s face it, in this tough environment, many social landlords have already delivered the usual purchasing improvements: more efficient tender processes, lower pricing, better compliance. They’re important, but not enough on their own. 

The real value comes from the cross-organisational change that procurement can deliver when it’s connected to the heart of the business: streamlining operating processes, strengthening supplier partnerships, negotiating and then managing contracts through their lifetime. The versatility and commercial value of strategic procurement can help housing providers to deliver on their organisational priorities. 

So, in light of the Autumn Budget announcements, how can local authorities and housing associations harness strategic procurement here and now? Here are four initial steps: 

1. Challenge the status quo: Too many long-running contracts have rolled on without proper review or market testing. Opening dialogue with suppliers – especially when you’re facing budget or delivery constraints – can unlock solutions you won’t find on paper. The new Procurement Act actively supports this. 
2. Collaborate with your strategic suppliers: Every organisation has a handful of suppliers that account for most spend. By understanding their pressures, strengths and future potential and actively exploring new opportunities to collaborate with them, commercially minded procurement teams can identify the extra benefits these businesses can provide. As ever, if you don’t ask, you don’t get. 
3. Make social value meaningful: Social value can’t be a tick-box. In a period of financial constraint, suppliers can play a vital role: supporting vulnerable residents with heating, sustaining local community groups, offering career opportunities and adding capacity where organisations are stretched. Social value should be aligned tightly to organisational priorities, not left on the sidelines, and it must be tracked to ensure delivery.
4. Tap into local enterprise: Small businesses are vital to local growth, they are a rich vein of fresh ideas and provide great value and flexibility, particularly on local projects. Leverage their value by ensuring your processes are easy to navigate and by speaking to micro firms to understand what helps – or hinders – their ability to bid. 

---

What else did Rachel Reeves announce in the Autumn Budget? 

Cost of living measures: removal of the two-child benefit cap From April 2026. Reduction of the benefits trap for young people who live in supported or temporary housing. Training for under-25 apprenticeships will be free for SMEs, boosting employment prospects. 

Energy Company Obligation (ECO) funding ends March 2026. 

National insurance and income tax thresholds frozen until 2031: More workers will be drawn into higher tax bands over time. 

Regional devolution: £13bn flexible funding devolved to seven mayoralties for skills, infrastructure, and housing priorities. 

Temporary Accommodation: The Office for Budget Responsibility (OBR) warned of escalating costs: councils spent a record £2.8bn last year on temporary accommodation, with bills rising 25% annually. Demand is expected to keep growing, driven by homelessness pressures and potential refugee moves from asylum housing into local authority provision. 

With funding windows opening soon and pressures mounting, now is the time to act. Speak to PfH about how we can strengthen your procurement strategy and deliver real impact. Contact us via email info@pfh.co.uk or call us on 01925 282 398. 

By Guy Stapleford, head of consultancy services, PfH

---

---