Some 283,000 construction industry jobs could be lost, or not created, if the Government slashes the affordable house-building budget by 40%, according to a new report.
Research by the National Housing Federation, which represents housing associations, said a 40% cut to affordable house-building spending would mean the budget between 2011/12-2019/20 would be reduced from £28.6bn to £13.1bn – a fall of £15.5bn.
The Federation said this would lead to the following:
- Around 230,000 affordable homes would not be built up to 2020
- 570,000 people would be added to waiting lists for an affordable home
- Around 283,000 jobs in the construction industry would be axed or not created by 2020
- Economic activity would be cut by around £50bn over the next ten years.
Federation chief executive David Orr said: "It is clear the amount of public money available to fund various activities in the future is going to be tight. However, given the scale of the nation’s housing crisis, it is critical that the nation keeps building affordable housing.
"If we don’t safeguard the building of affordable homes then hundreds of thousands of vulnerable people will be added to waiting lists already at record levels.
"Brutal cuts of 40% to the housing budget would effectively shut the door on an entire generation which would be left with little hope of ever being allocated a social home.
"Over 31,000 jobs would also be lost from the construction industry every year and cost the economy £5.6bn a year in lost activity – if cuts on this scale were introduced.
"We would urge the Government to closely consider the huge human, social and economic cost of failing to invest in affordable housing."