The Chancellor is expected to launch a £1.8bn fund to allow more homes to be built on brownfield land in Wednesday’s Budget.

The government said 160,000 homes could be built on brownfield land, supporting around 50,000 jobs.

It follows on from new Housing Secretary Michael Gove calling for more to be done to build on brownfield land, with controversial planning reforms that would have looked to use the green belt more sensibly being potentially dropped.

There was also a £75m funding announcement from the Department for Levelling Up, Housing and Communities recently for the Brownfield Land Release Fund.

Brian Berry, Chief Executive of the FMB, said: “This commitment by the Government to make more land available is welcome news for the smallest developers, 63% of which are limited in their ability to build the homes needed by a lack of available and viable land. It’s important that more small sites are unlocked in all communities as local builders often deliver fewer than 10 homes at a time, but to the highest quality and to local need.”

Berry concluded: “It is encouraging that the FMB’s calls for investment in the planning system have been answered. Digitisation must make the system simpler and faster, and free up planners’ time to support the smallest firms navigate the often complicated planning process.”

Tom Fyans, deputy chief executive of CPRE, the countryside charity, said: “Making proper use of our previously developed brownfield land is one sure fire way to help build back better. This investment is a huge win for communities and countryside campaigners up and down the country who have long been calling for more well-located homes they can afford.

“The funding has the potential to breathe new life into long forgotten and derelict areas of our towns, cities and villages. Better yet, it will also go a long way in halting the loss of greenfield land, which is crucial in our efforts to tackle the climate and nature emergencies.

“But we know there is a long way to go to match ambition with action. Our research has found that there is space for over a million new homes on brownfield land, with a significant proportion already having planning permission.

“It really is a no brainer that these sites, many of which are located in the north and midlands, are put at the front of the queue for development to realize the government’s levelling up ambitions.

“That’s why we’re urging the government to turn this funding pledge into well designed, low carbon homes that local people can afford with no delay.

“It is crucial these commitments are backed up by a firm urban brownfield first policy when the government revises the National Planning Policy Framework in the New Year. Otherwise we’ll continue to see poorly designed greenfield developments in the wrong places that siphon off a lot of public money.”