Thousands of new homes, and jobs could go under government cuts

The National Housing Federation has warned that more than half a million affordable homes could be axed from the Government’s building plans if earmarked public spending cuts are implemented.

Governmnent figures set out in the Pre-Budget Report imply spending cuts to the housing budget of 17.98%, which if implemented over the next decade, would cu the planned number of new affordable homes by 556,000.

The Federation also warned cuts of 17.98% over the next 10 years would also lead to 278,000 jobs and apprenticeships in the construction industry, and the wider economy, either being lost or not created.

The Federation believes that if the number of new affordable homes is slashed by 556,000, a further 1.25m people would be added to waiting lists and plunge the country into an even deeper housing crisis.

The failure to build the extra 556,000 would lead to 278,000 jobs and apprenticeship opportunities being missed on construction sites, factories, timber yards, and in the wider economy, due to the way in which money invested in house building ripples through to other sectors.

Federation chief executive David Orr said: “A swingeing cut of 17.98% to the budget for new affordable homes would deepen the national housing crisis and lead to the loss of thousands of jobs and apprenticeships...Reducing the number of new homes by such a huge degree would kill off the dreams of more than a million people in desperate need of decent, affordable housing – leaving many to live in cramped, unsuitable conditions for a generation.

“Axing the new homes budget would also increase unemployment and obliterate the national programme for creating apprenticeships – as housing is one of the nation’s key generators of jobs and prosperity.”

He added: “As bad housing is closely linked to poor health, poor educational attainment and higher crime rates, ministers should give funding for the house building programme the same untouchable status as health, education and policing – and protect it from the coming savage cuts.”