Rough Sleeping and Good Growth Funds

Judith Cummins Excerpts

Monday 26th October 2026 Commons Chamber

[The Minister for Homelessness, Democracy, Communities and Faith (Florence Eshalomi)]

With permission, I would like to make a statement on the Government’s plan to tackle rough sleeping and homelessness and to deliver good growth in every part of the country. On the Prime Minister’s first day in Downing Street, he made ending rough sleeping his first priority. He did so because having a safe and secure place to call home matters to almost everything else in life. It affects our health and how children do at school, whether people can find and keep a job and the opportunities that come their way in the future.

Security is about much more than a roof over our heads; it is about whether the place we call home gives us the chance to succeed. That means putting the foundations in place for strong local economies and thriving places, because, ultimately, the economic growth we want is created by people, and people are better able to get on in life when they have a decent home, a good job and a community with the tools to shape its own future. For this Government, that means backing local leaders, too, giving them the freedom to invest in the homes, high streets, jobs and infrastructure their communities need, rather than making them bid for funding from Whitehall pots.

Today, I am updating the House on two important steps in our work: new investment to tackle rough sleeping and prevent homelessness, and the roll-out of good growth funding across England. Both stem from the same belief: national Government should provide the backing while local leaders who know their communities have the freedom to get on and deliver.

Earlier today, the Prime Minister brought together local leaders, charities, businesses and other partners in Downing Street to drive forward the pledge he made on his first day in office. Our immediate commitment is to offer everyone sleeping rough a route off the streets this Christmas and to bring forward new accommodation and the right support to help people move ahead with their lives. We are backing that commitment with an extra £432 million from next year, so that local areas can continue to provide a route off the streets over the rest of this Parliament. That takes the total funding supporting the Prime Minister’s pledge to £874 million.

This immediate help matters enormously, particularly as the winter approaches. This weekend, the first two named storms of the season brought severe weather across the country. Tragically, two men lost their lives after being struck by falling trees in Dumfries and Galloway and in north London. Our thoughts are with their families and loved ones. For anyone sleeping rough on the streets, that is a stark reminder of the dangers that winter can bring.

Getting people somewhere safe is urgent, but just as important is what happens next. It is not enough to offer somebody a bed for a few nights and then see them return to the streets. People sleeping rough may need help with their physical or mental health, finding a job or other complex needs. A route off the streets, then, must come with the support that people need to rebuild their lives, regain their independence and, crucially, find lasting security away from the streets.

This programme is designed to be led locally. Rough sleeping does not stop at council boundaries, and neither do many of the services that people rely on. Whether funding goes directly to local councils or through mayoral strategic authorities, local leaders will have the flexibility to bring partners together and respond to local pressures.

However, we need to break the cycle of crisis altogether. We cannot wait until someone has lost their home before stepping in. That is at the heart of our national plan to end homelessness: public services working together, intervening earlier and preventing homelessness wherever possible. That is why we have already moved to ban no-fault evictions, repeal the Vagrancy Act 1824 and reform right to buy to protect our social housing stock. We are bringing long-term empty homes back into use and tackling unsuitable bed-and-breakfast accommodation for families. Temporary accommodation should be temporary. All too often, it is anything but.

The principle of trust in local leaders brings me to good growth. In our “Rewiring the State” Cabinet statement in July, we committed to supporting mayors to establish good growth funds across England, putting more investment and decisions in the hands of local leaders. Today, I am updating the House on the first steps towards delivering that commitment, ahead of the Chancellor confirming the plans at the Budget.

The people best placed to help their communities should be given the freedom to invest in their future. For too long, local leaders have had to navigate a patchwork of Whitehall funding pots, making it harder to plan for the long term and use public money effectively to unlock the most important projects for economic growth. Good growth funds are designed to change that.

Today, we are confirming funding of £285 million for 2027-28, comprising good growth funds and transitional capital funding for other areas progressing towards mayoral devolution. That will give local leaders more freedom to invest in the projects their places need, from homes and town centre regeneration to infrastructure that connects people to jobs and opportunities. Importantly, when money goes back into that fund, it can be used to back new projects. That creates a virtuous cycle: public money goes further while mayors gain greater independence to plan and deliver for the long term.

I am proud to be a product of local government, and I want local government to have the means to deliver. That is why we are working with mayors to design a new £1.5 billion borrowing facility from 2028, giving them access to finance to back major local projects. We will provide strategic authorities with an additional £150 million in 2027-28 to strengthen their capacity and capability as the range of powers and responsibilities they hold grows, because devolution cannot simply mean giving local leaders more responsibility. If we expect them to take on that responsibility, they need the people, expertise and resources to deliver properly. These are first steps. The Chancellor will confirm these plans at the Budget, alongside the fiscal devolution road map, which will set out the Government’s plan for a new funding system for regional and local government in England.

I began with the commitment the Prime Minister made on his first day in Downing Street. Today’s summit at Downing Street was about keeping the momentum behind that promise—getting people off the streets, ensuring that the right help is there for them afterwards and breaking the cycle of crisis that leads people into homelessness in the first place. The Prime Minister also talked on his first day about a Government who invest in people’s successes rather than paying for failure, and that underpins all I have set out today. People can get on in life when they have a decent home, a good job and a community with the confidence and means to shape its future. That means giving people the security they need. It means giving local leaders the powers and investment to create opportunities in the places they know best. That is how we build a country where no one is written off and where every part of the country has the chance to succeed and to share in that good growth. In that spirit, I commend this statement to the House.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.

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[Florence Eshalomi]

It is always good to see the hon. Member in his place.

We have to look at the facts of what we are dealing with. This Government inherited a homelessness and rough sleeping crisis; both rough sleeping and homelessness in temporary accommodation have more than doubled since 2010. I mentioned that I have just come from a summit earlier this morning in Downing Street, where the Prime Minister, the Secretary of State and I convened a range of organisations, charities, faith leaders, civic societies and groups, and council leaders working on this important issue.

To understand the challenges of rough sleeping, we have to recognise that it is not about just putting a roof over people’s heads. For many people sleeping rough, it is about the wraparound support. It is about the long-term interventions on substance misuse. It is about support to help them manage their finances. This is what, crucially, that funding will go to. It is not about handing out £200,000 per person; it is about the many organisations who fundraise on an annual basis to address this issue. We on this side of the House are proud that this Government are committed to that, given that, to our shame, we are seeing people still sleeping rough in England in 2026.

The shadow Minister outlined the figures and statistics from Manchester. What he failed to realise and mention is the fact that the then Mayor of Greater Manchester inherited that crisis from the then Government, and that there was not enough funding to support some of the key initiatives. So the then Mayor of Greater Manchester took on that initiative, working with many charities to bring forward a programme which we are now looking to replicate in order to be able to meet this commitment.

When looking at investment and intensive support for people sleeping rough, we must listen to their lived experience—the lived experience that was shared with us this afternoon and at that summit—to ensure this is an issue not just for the Ministry of Housing, Communities and Local Government to solve, but working across Departments, across Cabinet, showing that there is real commitment. Now we have a Prime Minister, Secretary of State and Minister who are really focused on looking at how we can end rough sleeping, I hope the Opposition will get on board.

[Madam Deputy Speaker (Judith Cummins)]

I call the Chair of the Housing, Communities and Local Government Committee.

[Ms Abena Oppong-Asare (Erith and Thamesmead) (Lab)]

I warmly welcome the Minister’s statement. I had the opportunity to attend the summit, and I agree that prevention is the key to ending rough sleeping. I ask the Minister to implement all the Committee recommendations from the rough sleeping inquiry—I know the Government have implemented some of them. I have a specific further question: what assessment have the Government made on identifying people likely to become at risk of homelessness if the local housing allowance remains frozen at this Wednesday’s Budget?

[Florence Eshalomi]

I thank the Chair of the Housing, Communities and Local Government Committee for her participation in this morning’s summit. She highlighted the Committee’s statement and recommendations: I hope that she agrees that this Government are going further and faster than previous Governments in addressing rough sleeping. This new cash injection will make immediate provision to address the Committee’s recommendations, help to ensure people are off the streets by Christmas and, most importantly, provide long-term and intensive wraparound support to ensure that no one ends up back on the streets. She knows that the local housing allowance is close to my heart. We continue to raise it with Treasury colleagues and I ask her to continue to press the Treasury on the matter, in the same way that I will continue to do so.

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

The Liberal Democrats welcome the Government’s commitment. We want to see an end to rough sleeping, but we have heard such pledges before. The last Conservative Government promised to halve rough sleeping by 2022 and end it by 2027, then brought that forward to 2024, but they achieved neither, leaving 8.5 million people in England with unmet housing needs. This attempt must do better—a catchy pre-Budget headline needs a plan behind it.

Somerset council has identified 142 bed spaces, but given that it will not know its share of the money until Wednesday, that will leave only around eight weeks for the council to deliver the spaces before Christmas. Rough sleeping is not just an urban problem: in Somerset, 80 people were found rough sleeping on a single night at the last count. In Glastonbury, 131 vans and caravans are being lived in at the roadside by people who have been priced out of a home by rents that they simply cannot afford. They do not show up in the rough sleeping count, but they are homeless in all but name. The County Councils Network warns that more than 23,000 children in rural England are growing up in temporary accommodation. None of this will be fixed without more social homes, so the Liberal Democrats would build 150,000 of them a year.

I have three questions for the Minister: is eight weeks a realistic timeframe for councils to deliver? Will the funding reach rural areas, not just our cities? And will it be backed by long-term investment in social housing, or will people be forced back on to the streets come January?

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[Several hon. Members rose—]

[Madam Deputy Speaker (Judith Cummins)]

Order. I want to get in as many Members as I can on this statement, so can we have shorter questions and shorter answers, please?

[Catherine Atkinson (Derby North) (Lab)]

I welcome today’s additional £432 million to tackle rough sleeping. With reoffending accounting for 80% of offending in England and Wales, securing stable accommodation on release from prison is absolutely central to reducing reoffending and making our communities safer, yet last year around 1,000 people a month left prison homeless. Will the Minister work with the MOJ to use this investment to go beyond the target of halving homelessness among prison leavers? As we seek to accelerate progress on preventing homelessness, I am concerned that the Ministry intends to replace quarterly accommodation figures with annual reporting, so will the Minister press for quarterly publication to continue to be tracked?