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Spending review 'to axe funding for 21,000 homes'
14/10/10
Edited by Tom Bardsley.Cuts set to be outlined in next week's comprehensive spending review (CSR) could mean over 21,000 new homes are scrapped, it has been claimed.
Analysis of forecasts from the emergency Budget by the Construction Products Association reported by Construction News shows the Department for Communities and Local Government could see its capital expenditure fall by £6 billion in the four years covered by the CSR.
That would be the equal to the cost of having builders deliver 21,874 properties over the same period.
The CPA said under current Whitehall spending targets, overall net public sector investment is set to fall from 3.5 per cent of gross domestic product (GDP) in 2009-10 to 1.3 per cent in 2013-14.
Noble Francis, the organisation's economics director, argued that if the figure was instead held at 2.25 per cent of GDP, the government budget would be cut by £12 billion in 2013-14, but it would still provide "thousands of essential homes".
The government will unveil the CSR on 20th October.
