Billions of pounds allocated to tackle Britain’s housing crisis has been returned to the Treasury because the housing department was unable to find projects to fund.
Figures released under the Freedom of Information Act show the Department for Levelling Up, Housing and Communities (DLUHC) was unable to find projects for the £1.9bn of funding budgeted for 2022-23.
This amounts to a third of DLUHC’s housing budget, and includes £255m meant to fund new affordable homes and £245m intended to support improvements to building safety following the Grenfell Tower fire, according to the figures first published by the Guardian.
The failure to spend money is likely due in part to rising interest rates and uncertainty in the housing market making it difficult to find projects to fund.
Image: Grenfell Tower
Around £1.2bn earmarked for Help to Buy was also handed back in the last year of the scheme’s operation due to lower-than-expected demand.
When departments fail to spend money budgeted for a given year, they can “reprofile” the spending into future years.
DLUHC has done this with another £363m that was meant to be spent on affordable homes in 2022-23 but will now be spent in 2023-24.
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The money must be surrendered to the Treasury if the spending is delayed beyond the next spending review, which could come in 2024.
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What is happening to mortgage rates?
Lisa Nandy, Labour’s shadow housing secretary, said: “This absolutely beggars belief. We are in the middle of an acute housing crisis, even the Housing Secretary says the system is ‘broken’, and yet the Government was unable to spend a third of its housing budget.
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“The Tories have simply given up.”
A DLUHC spokesperson said: “These are multi-year funding programmes that are being spent flexibly – meaning some money can be moved into future years depending on demand and the wider economic climate.”
Russia wants “quick peace” in Ukraine and London is at the “head of those resisting” it, the Russian ambassador to the UK has told Sky News.
In an interview on The World With Yalda Hakim, Andrei Kelin accused the UK, France and other European nations of not wanting to end the war in Ukraine.
“We are prepared to negotiate and to talk,” he said. “We have our position. If we can strike a negotiated settlement… we need a very serious approach to that and a very serious agreement about all of that – and about security in Europe.”
Image: Russian ambassador Andrei Kelin speaks to Yalda Hakim
US President Donald Trump held a surprise phone call with his Russian counterpart Vladimir Putin last month, shocking America’s European allies. He went on to call Ukrainian President Volodymyr Zelenskyy a “dictator” and relations between the pair were left in tatters after a meeting in the Oval Office descended into a shouting match.
Days later, the US leader suspended military aid to Ukraine, though there were signs the relationship between the two leaders appeared to be on the mend following the contentious White House meeting last week, with Mr Trump saying he “appreciated” a letter from Mr Zelenskyy saying Kyiv was ready to sign a minerals agreement with Washington “at any time”.
In his interview with Sky News’ Yalda Hakim, Mr Kelin said he was “not surprised” the US has changed its position on Russia’s full-scale invasion of Ukraine, which began in 2022, claiming Mr Trump “knows the history of the conflict”.
“He knows history and is very different from European leaders,” he added.
I’ve interviewed the Russian ambassador to the UK, Andrei Kelin, on a number of occasions, at times the conversation has been tense and heated.
But today, I found a diplomat full of confidence and cautiously optimistic.
The optics of course have suddenly changed in Russia’s favour since Donald Trump was elected.
I asked him if Russia couldn’t believe its luck. “I would not exaggerate this too much,” he quipped.
Mr Kelin also “categorically” ruled out European troops on the ground and said the flurry of diplomatic activity and summits over the course of the past few weeks is not because Europeans want to talk to Moscow but because they want to present something to Mr Trump.
He appeared to relish the split the world is witnessing in transatlantic relations.
Of course the ambassador remained cagey about the conversations that have taken place between President Trump and Vladimir Putin.
There is no doubt however that Russia is welcoming what Mr Kelin says is a shift in the world order.
Peace deal ‘should recognise Russian advances’
The Russian ambassador said Moscow had told Washington it believed its territorial advances in Ukraine “should be recognised” as part of any peace deal.
“What we will need is a new Ukraine as a neutral, non-nuclear state,” he said. “The territorial situation should be recognised. These territories have been included in our constitution and we will continue to push that all forces of the Ukrainian government will leave these territories.”
Asked if he thought the Americans would agree to give occupied Ukrainian land to Russia, he said: “I don’t think we have discussed it seriously. [From] what I have read, the Americans actually understand the reality.”
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In full: Russian ambassador’s interview with Sky’s Yalda Hakim
Moscow rules out NATO peacekeepers in Ukraine
He said Russia “categorically ruled out” the prospect of NATO peacekeepers on the ground in Ukraine – a proposal made by UK Prime Minister Sir Keir Starmer and French President Emmanuel Macron – saying “they have no rules of engagement” and so would just be “sitting in cities”.
“It’s senseless” and “not for reality,” Mr Kelin added.
He branded the temporary ceasefire raised by Mr Zelenskyy “a crazy idea”, and said: “We will never accept it and they perfectly are aware of that.
“We will only accept the final version, when we are going to sign it. Until then things are very shaky.”
He added: “We’re trying to find a resolution on the battlefield, until the US administration suggest something constructive.”
The United States is “finally destroying” the international rules-based order by trying to meet Russia “halfway”, Ukraine’s ambassador to the UK has warned.
Valerii Zaluzhnyi said Washington’s recent actions in relation to Moscow could lead to the collapse of NATO– with Europe becoming Russian President Vladimir Putin‘s next target.
“The failure to qualify actions of Russiaas an aggression is a huge challenge for the entire world and Europe, in particular,” he told a conference at the Chatham House think tank.
“We see that it is not just the axis of evil and Russia trying to revise the world order, but the US is finally destroying this order.”
Image: Valerii Zaluzhnyi. Pic: Reuters
Mr Zaluzhnyi, who took over as Kyiv’s ambassador to London in 2024 following three years as commander-in-chief of the Ukrainian armed forces, also warned that the White House had “questioned the unity of the whole Western world” – suggesting NATO could cease to exist as a result.
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But on the same day, the US president ordered a sudden freeze on shipments of US military aid to Ukraine,and Washington has since paused intelligence sharing with Kyiv and halted cyber operations against Russia.
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Mr Zaluzhnyi said the pause in cyber operations and an earlier decision by the US to oppose a UN resolution condemning Russian aggression in Ukraine were “a huge challenge for the entire world”.
He added that talks between the US and Russia – “headed by a war criminal” – showed the White House “makes steps towards the Kremlin, trying to meet them halfway”, warning Moscow’s next target “could be Europe”.
The Rohingya refugees didn’t escape danger though.
Right now, violence is at its worst levels in the camps since 2017 and Rohingya people face a particularly cruel new threat – they’re being forced back to fight for the same Myanmar military accused of trying to wipe out their people.
Image: A child at the refugee camp in Cox’s Bazar
Militant groups are recruiting Rohingya men in the camps, some at gunpoint, and taking them back to Myanmar to fight for a force that’s losing ground.
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Jaker is just 19.
We’ve changed his name to protect his identity.
He says he was abducted at gunpoint last year by a group of nine men in Cox’s.
They tied his hands with rope he says and took him to the border where he was taken by boat with three other men to fight for the Myanmar military.
“It was heartbreaking,” he told me. “They targeted poor children. The children of wealthy families only avoided it by paying money.”
And he says the impact has been deadly.
“Many of our Rohingya boys, who were taken by force from the camps, were killed in battle.”
Image: Jaker speaks to Sky’s Cordelia Lynch
Image: An aerial view of the refugee camp in Cox’s Bazar
The situation in Cox’s is desperate.
People are disillusioned by poverty, violence and the plight of their own people and the civil war they ran from is getting worse.
In Rakhine, just across the border, there’s been a big shift in dynamics.
The Arakan Army (AA), an ethnic armed group has all but taken control of the state from the ruling military junta.
Both the military and the AA are accused of committing atrocities against Rohingya Muslims.
And whilst some Rohingya claim they’re being forced into the fray – dragged back to Myanmar from Bangladesh, others are willing to go.