Budget 2024: the government increases credits for the renovation of housing to the detriment of new construction

“Nearly 5 billion euros in commitments are planned in 2024 to support the French in renovating their homes, an increase of 1,6 billion euros in commitments,” according to the finance bill unveiled on Wednesday. .

The executive reiterates its objective of 200.000 “efficient renovations” which allow substantial energy savings in 2024.

On the other hand, few credits are allocated to the production of new housing, which has been in free fall for several months.

The zero-interest loan, promoting home ownership, is, as expected, extended until 2027 but refocused on collective housing and stressed areas.

Where it is conditional on works, it “excludes the financing of works for the installation of heating devices running on fossil fuels”, according to the executive.

The favorable tax regime for intermediate housing (at regulated rents but higher than social housing) is extended to renovated old buildings whereas until now it was reserved for new buildings.

And social landlords will be able to benefit from a property tax exemption when they apply the “second life” system, consisting of renovations as efficient as for new housing.

The renovation ambition is tempered by the words of Bruno Le Maire, who opened the door on Tuesday to a postponement of the timetable for banning the rental of the most energy-intensive housing, known as "thermal sieves", before backpedaling on Wednesday by judging that There was in fact "no question" of changing the calendar.

“Declarations of good intentions must be transformed into actions, and urgently,” reacted to AFP Loïc Cantin, president of the National Real Estate Federation (Fnaim) who has long campaigned for a relaxation of the timetable .

For housing for the most precarious, credits are increased from 29 to 73 million euros, close to what is provided for in the five-year "Housing First" plan (30 million increase each year until 2027).

The objective is to house, by 2027, 30.000 more people in the private sector via rental intermediation and to create 10.000 additional places in boarding houses, social structures intended for single people.

The executive finances 203.000 emergency accommodation places, slightly more than in 2023, and announces an additional 31 million to “fight exclusion and improve access to rights”, primarily targeting women.

Finally, the indexation of social benefits to inflation will automatically increase the envelope for personalized housing assistance (APL) by around 400 million.

For Coquerel (LFI), “much more is needed on ecological transition and housing”

“The budget does not meet the needs of the moment. Much more is needed on the ecological transition and housing,” LFI president of the Finance Committee Eric Coquerel reacted to the Assembly on Wednesday, after the presentation of the draft law. finances 2024.

“It is a budget which counts on growth which in my opinion will not be there at 1,4%”, estimated Insoumis, questioned by AFP after the presentation of the 2024 draft budget in Council ministers.

In the eyes of this left-wing elected official, "it is a budget which does not meet the needs of the moment, much more is needed on the ecological transition, much more on the question of housing which is a total social implosion, on health, education. For that, we would have to have the courage to reach out to revenues, and to those who have received tax gifts for five years."

“The reductions in public spending which are put on paper will in one way or another strain the purchasing power of the French, the most disadvantaged, in particular the end of the energy shield”, denounced the deputy for Seine- St Denis.

The PS group in the Assembly, for its part, denounced a budget which signals the "return of austerity", and a debate blocked by the "downpour of 49.3" which is coming. In a four-page document, he asks to "put an end to tax cuts (...) for the benefit of large businesses and the wealthiest."

Wishing for a “strengthening of tax progressivity”, he also wants a review of “tax and social niches for large companies and high salaries”. Like LFI, he calls for increased efforts on the ecological transition, and wants "an emergency plan for the public hospital of 17 billion over 3 years and an old age law mobilizing 10 billion by 2030".

On the right, the leader of senators LR Bruno Retailleau conversely criticized the absence of "real savings" in the government's copy. “We are at the mercy of a reduction in our rating (...) we must regain control, control of public spending. It is imperative.”

“It’s very worrying,” adds LR MP Véronique Louwagie. “The only spending that is decreasing is cyclical, such as the end of the tariff shield. There is no reduction in structural public spending.”

In its 2024 draft budget, the government is faced with a difficult equation, seeking a balance between France's debt reduction, the fight against inflation and investments in the energy transition.

In the absence of an absolute majority in the Assembly, the executive could once again resolve to adoption without a vote by resorting, as last year, to article 49.3 of the Constitution.