Deputy Prime Minister Angela Rayner has declared that the UK is living through the “most acute housing crisis in living history” as she announced a radical reform to the country’s housing planning system.

Addressing the Commons, the Housing Secretary has promised to fix the Tories’ legacy by bringing back mandatory housing targets of 370,000 a year on councils.

Under the plans, Ms Rayner announced a review of the green belt if councils do not meet the housebuilding targets.

Responding to Rachel Reeves’ spending announcement, Diane Abbott has sparked a Labour rebellion against the Chancellor over her public cuts, labelling the move as “renewed austerity.”

It comes as Ms Reeves warned that “more difficult choices” are coming after axing winter fuel payments for many pensioners in a bid to help plug a £22bn black hole in the public finances.

Also challenging the government, Labour peer Lord Sikka argued the move was “taking away” £300 from pensioners by “a measure that was not in our manifesto.”

Following her speech, Ms Reeves doubled down on accusations that Jeremy Hunt “lied” to the public and to MPs during the election campaign about the state of public finances.