Philip Hammond is looking to reform the planning system by allowing building on the green belt to help more young people get on the housing ladder.
In an attempt to resolve the housing crisis in high-demand areas, the Chancellor is expected to use this month’s budget to suggest reclassifying some of the protected countryside.
The land would be used as part of a deal to allow extra borrowing to fund house building to tackle the country’s poor productivity.
A Whitehall source told the Telegraph: “The Chancellor is keen to liberalise planning restrictions and is looking very closely at the green belt and what can be done there. But there is difficulty in that the Prime Minister is not convinced by it.”
Jacob Rees-Mogg, the backbench Tory MP, who has said opposing parts of Mr Hammond’s financial plans would effectively constitute a “vote of no confidence” in the Government, told the Telegraph on Saturday: “Reforming the planning system is a prerequisite to providing more housing. A review of the green belt may need to be a part of this.”
However, using green belt land is a contentious issue with many Tory MPs representing constituencies where residents live near or next to green spaces they do not want to be built on.Theresa May marked out housing as a key policy in her party conference speech where she announced a £10 million boost to the Help to Buy scheme and more protection for those living in private rented accommodation.
“I will take personal charge of the Government’s response, and make the British dream a reality by reigniting home ownership in Britain once again,” she vowed.
She said that in the last four decades “we simply haven’t built enough homes” and highlighted government proposals to give councils new powers to ensure developers build homes once they obtain planning permission. Last month she called on Britain’s biggest developers to attend a Downing Street summit after pledging to “dedicate” her premiership to fixing the “broken” housing market.
Senior figures fear a continuing housing crisis will seriously affect the Conservatives’ prospects in future elections.
Sajid Javid, the Communities Secretary, has suggested the Government could borrow billion of pounds to invest in hundreds of thousands of new homes.
The Telegraph understands ministers are examining plans that would result in the Government directly commissioning small and medium-sized developers.
The move would effectively make the Government one of the nation’s biggest housebuilders in an attempt to kick-start the housing market and break the monopoly of large developers.
Mr Hammond will set out his Budget on Nov 22, and Tory rebels are reportedly considering voting against it in an attempt to oust the Chancellor.
Philip Hammond wants to allow building on the green belt, it has been claimed The land is expected to be used as part of a deal to allow extra borrowing to fund house building.
A Whitehall source told the Telegraph: “The Chancellor is keen to liberalise planning restrictions and is looking very closely at the green belt and what can be done there.
“But there is difficulty in that the Prime Minister is not convinced by it.”
The claim comes amid reports his relationship with Theresa May has been left at an all-time low after they had a major disagreement over how to solve the housing crisis during a meeting.
The pair this week met to plan measures set to be announced in the Chancellor’s Autumn budget on November 22.
Aides were reportedly staggered by how condescending the Chancellor was to Mrs May.
The aides present claimed that Mr Hammond made no effort to hide his contempt for the Prime Minister.
A Number 10 insider told the Sun: “Officials in the room could not believe how Philip was speaking to the PM.
“It was like he felt he had to explain everything to her like a child.
“It came across as unbelievably rude.”