Chancellor Rachel Reeves appears to have ruled out a revival of the Help to Buy scheme to give young people a lift onto the housing ladder.

She said spending on defence had to be the priority for Britain, above incentives to boost the property market, the Daily Telegraph reports.

Tax rises

When asked about Help to Buy, Reeves (main picture) said: “If defence is the number one priority, and we live in a dangerous world, that means you can’t make commitments everywhere, because then you end up in the position that previous Governments have ended up in, where you over-commit, and then you under-deliver, and you end up with high interest rates.”

Tax rises were more likely than costly new schemes for first-time buyers, she went on to to tell a conference organised by investment bank Peel Hunt.

Spending cuts

Amid disagreements in the Cabinet about spending priorities, Government departments have been told to find cuts to pay for an additional £15billion for defence in the next four years.

Earlier this year, it was reported a sharp slowdown in new-build sales had led the Government to consider introducing a successor to Help to Buy.

The Ministry of Housing was said to be assessing how earlier rounds of Help to Buy affected supply, prices and buyer access.

Last month, it was announced first-time buyers will be eligible for interest-free loans worth £10,000 under a new shared-equity scheme set up by the Scottish Government.

Need cash

Help to Buy ran from 2013 to 2022 and allowed buyers to purchase a new-build home with a 5% deposit alongside a Government-backed loan.

This week, Savills revealed that more than half of all first-time buyers need cash from the ‘Bank of Mum and Dad’ to get onto the property ladder.

More on first-time buyers