Cuts Watch #114: Housing cuts
Yesterday the Treasury announced that an additional £220 million would be cut from the Department for Communities (which will in practice from from the Homes and Communities Agency (HCA)). This is in addition to existing cuts of £230 million from the HCA, which have already led to significant reductions in building budgets for affordable homes.
But Grant Shapps welcomed this cut as a ‘confirmation of £390million to build over 8,500 new much-needed homes’ – claiming that 8,000 construction jobs would be ‘protected’: the £390 million that has been saved from the axe is being presented as new spending. The unanswered question must therefore be how the £450 million that will not be spent also impacts on jobs – using the same ratios the cuts announced already will lead to 9200 job losses in construction – with the sector likely to be affected further by the cancellation of the Building Schools for the Future programme.