More than half a million affordable homes could be axed from the Government's building plans if earmarked public spending cuts are implemented, the National Housing Federation said.
The figures which were 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 cut the originally planned number of new affordable homes by 556,000.
"Given the dire consequences big cuts in spending would have on house-building numbers, and job losses, housing should be viewed in the same 'untouchable' terms as health, education and policing by all the political parties, and be protected from cuts," the federation stated.
In July of 2007 the Government pledged to build three million homes by 2020, one million of which would be affordable houses. It is expected that 162,000 of the targeted affordable homes will have been built by April 2011.
According to the Institute for Fiscal Studies, figures in the Pre-Budget Report imply the Government will have to cut budgets from all departments by an average of 17.98% in real terms. If cuts of this order were implemented to the housing budget up to 2020 it would mean that only 444,000 of the targeted one million affordable homes would be built – leaving a shortfall of 556,000, the federation said.
With cuts of 17.98%, the affordable housebuilding sector would suffer a loss of billions of pounds of worth of extra public investment over the decade. If the reduced rate of building continued into the long-term, it would take the Government until 2038 to build one million affordable homes.
Federation chief executive David Orr said: "Axing the new homes budget would increase unemployment and obliterate the national programme for creating apprenticeships because housing is one of the nation's key generators of jobs and prosperity."
Here at Greengates Builders Merchants Accrington, Lancashire we hope houses continue to be built as this will create new homes and new jobs for people all over the country.