Leaks of the ‘Budget for growth’ today revealed that Osborne believes the new measure will boost construction and help support up to 50,000 house building jobs.
Under the new plan thrashed out with house builders, buyers would be required to find 5% of the cost of a new home, while the government and home builder would together put up 10%.
The growth message is expected to be supported with widely flagged up measures to loosen planning rules around the change of use of buildings to housing.
Osborne is expected to also launch up to 20 enterprise zones for Britain’s most deprived areas.
Details of at least five enterprise zones are expected to be revealed, with councils later asked to bid for the remainder of places
The new enterprise zones will be similar to those set up in the 80s and 90s, offering tax breaks, deregulation, relaxed planning rules and now super-fast broadband.
The government is said to have allocated £100m over four years for the scheme.