Cuts to Kickstart funding announced by the Homes and Communities Agency (HCA) could potentially 'worsen' the shortage of housing, according to the Home Builders Federation (HBF).
The comments come after the Treasury's announcement of £150m-worth of cuts to the Government's housing pledge. It is understood £50m of this will be Kickstart and £100m for affordable housing.
It is also understood there will be consultation on cutting around £50m from the Housing Market Renewal budget.
The cuts could be even deeper though, as some £600m of housing programmes, including the housing pledge, await confirmation from the Treasury.
All Kickstart programmes yet to be signed off will be put on hold until after the Budget on 22 June of this year, when remaining cash is due to be allocated.
Home Builders Federation (HBF) chairman Stewart Baseley said: "Cuttting Kickstart money that creates immediate benefits in terms of local jobs and for the wider economy, is a cut on investment, not waste. Public money invested through Kickstart pulled in many more times that in private sector investment - which will now be lost to the economy. The announcement is extremely disappointing."
Here at Greengates Builders Merchants Accrington, Lancashire we hope that the government does not make such enormous cuts to the housing pledge that was originally made and that the economy will slowly but surely start to recover from the harsh times we have all seen over the past few years!