The CBI said housing should form the main plank of this month’s Budget to bump-start the economy.

Its wants to see an extra 50,000 affordable homes, fresh measures to help first and second-time buyers and VAT cuts to help householders refurbishing homes.

Leaders also want help for smaller house builders which are struggling to access finance.

The CBI’s track record for calling the direction of Osborne’s Budgets has been very good of late. Up until now its focus, like the Government’s, has been heavily weighted to transport and energy infrastructure.

John Cridland, CBI Director-General, said: “With its relatively short lead-in times, house building offers the most bang-for-buck in growth terms – unleashing pent-up demand, while creating jobs and growth.”

The CBI says the proposals should form part of a fiscally-neutral Budget, which would shift £2.2bn from current spending to high-growth areas.

This would include £1.25bn on capital investment – including housing – and £950m on high-growth business tax measures.

He said: “We must supercharge the NewBuy scheme to allow second-time buyers struggling to get on the next rung of the property ladder.

The CBI is also calling on the Government to bring forward its road spending and repair programme, as well as strengthening support for exporters and for smaller firms struggling to access finance.

This comes as rumours spread that the Free Schools Budget is up for the chop and several more road schemes will be accelerated along. These are thought to include: A303 Stonehenge Bypass, A30 over Bodmin Moor, Upgrading A47 across Norfolk to motorway and the upgrade of a 20-mile section of A14