Britain will build tens of thousands of new homes twice as quickly as normal, ministers will pledge today as they announce a £5billion find to solve the housing crisis, will be unveiled by ministers today.

Philip Hammond and Sajid Javid will also set out changes in planning rules to encourage more building on brownfield sites and in derelict shopping centres.

Mr Javid, the Communities secretary, will tell the Conservative party conference that it is a “moral duty” for the Government to build more homes and tackle the housing shortage.

Mr Hammond, the Chancellor, will refuse to say when he expects Britain to have paid down the deficit, after scrapping a target of 2020 set by his predecessor George Osborne.

A Cabinet split is opening up with Liam Fox, the international development secretary, suggesting that Mr Hammond should set a date for the deficit to be cleared after 2020.

Under the plans, the Government will a £3 billion Home Building Fund to help small family firms to build 25,000 new homes by 2020 and up to 225,000 in the longer term.

A separate £2billion loan fund will pay for a further 15,000 new homes by 2020 on surplus public sector land with extra cash, the ministers will say.