Business bosses call for radical housing boost in Budget

Aaron Morby 10 years ago

Britain’s business leaders are calling on the Chancellor to get more bang for his buck in the next Budget with a big boost for housing.

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

CBI’s housing proposals

  • Fund a further 50,000 affordable homes directly by injecting £1.25bn of capital investment through the Affordable Homes Programme. This would generate £18bn within the wider economy and creating 75,000 jobs
  • Encourage refurbishment of existing houses through VAT cuts or subsidies on renovation and repair work. This could create 80,000 jobs at a cost of no more than £500m, and would bring empty homes back into use
  • Accelerate public sector land release for new housing on “build now, pay later” terms by moving all responsibility to the Homes and Communities Agency
  • Review measures to increase institutional investment to encourage pension funds to invest in housing
  • Explore expanding the NewBuy mortgage guarantee scheme to those with limited or negative equity looking to step-up to their second home. This would make more properties available for first-time buyers
  • Introduce a housing deposit ISA to encourage saving. Combined with proactive marketing of the FirstBuy and NewBuy Government schemes, this would help overcome the perception among first-time buyers that they are unable to get a foot on the housing ladder
  • Extend the housing guarantee scheme to cover all housing tenures to support smaller house builders access finance.


    Latest news

    Derby picked as destination for Great British Railways HQ

    Public vote secures Derby's bid to be nerve centre of the rail industry
    18 hours ago

    Tilbury Douglas to replace hospital hit by weak concrete

    Stoke-on-Trent outpatients building containing Reinforced Autoclaved Aerated Concrete to be replaced
    18 hours ago

    London tower over historic Leadenhall market approved

    Building work to start in 2025 on 32-storey tower by historic city market
    24 hours ago

    PfH starts race for £520m housing decarbonising deal

    Four-year framework covers service specific lots from £5m to £100m
    22 hours ago

    “Rock solid” balance sheet and record results for Henry Boot

    Firm sees early signs of recovery this year in core markets
    23 hours ago

    £200m Edinburgh Haymarket office and hotel approved

    Haymarket Yards scheme to move to construction in 2024
    22 hours ago

    Countryside closes deal for £80m build to rent homes

    Deal with private rental developer Sigma to speed up delivery at two sites
    23 hours ago

    Wates commercial director joins Caddick

    Neil Trubshaw one of a string of appointments as contractor looks to expand across the north
    22 hours ago

    Fusion21 names 16 winners for £125m painting framework

    Latest deal will last four-years for public sector clients
    1 day ago

    Watkin Jones breaks ground on Cardiff 700 flats scheme

    Largest build-to-rent scheme in Wales gets underway
    2 days ago

    Green light for Birmingham 540-bed student scheme

    Work to start on Gough Street student tower this summer
    2 days ago

    Erith to transform former Ebbsfleet quarry

    Joint venture with Henley Developments will see 6,250 new homes built in Kent
    3 days ago

    Morgan Sindall wins £44m Stevenage leisure hub job

    Consolidation of town's sports facilities into one building will release land for 200 homes
    3 days ago

    Brickies back on the BBC for new series

    Season two of popular programme following workers at Hodgkinson Builders
    3 days ago

    Subcontractors wanted across Newcastle

    Latest Constructionline Meet the Buyer event: Register now
    2 days ago

    Green light for BBC’s £200m new Birmingham home

    BAM Construction tipped for historic Typhoo Tea Building conversion
    5 days ago

    Worker suffers brain trauma in concrete pump accident

    Ready mix firm Singh Will Mix It fined £175,000
    5 days ago

    Winners named for £139m wastewater framework

    Six firms share spoils on high value maintenance lot
    5 days ago

    Plans in for £35m York Uni student centre

    University hopes to start building work by next spring
    5 days ago

    Pent-up post pandemic demand powers up Beard

    Builder raises revenue 15% to £165m but cost inflation causes profit dip
    5 days ago

    Muse submits 260-home Horsham scheme

    Lovell Partnerships will build Larksfield Place scheme in heart of market town
    5 days ago

    Osborne CEO steps down after one month in the job

    Boardroom rejig comes as offsite business is sold to Bowmer & Kirkland
    6 days ago

    Five trades added to skills shortage list for visas

    Bricklayers, roofers, carpenters and plasterers gain relaxed visa status after months of employers' campaigning
    7 days ago

    Wates Residential to build over 300 homes in Wembley

    Brent Council signs developer deal with Wates for £100m scheme
    6 days ago

    Government energy efficiency taskforce experts named

    Infrastructure tsar Sir John Armitt and Barratt boss David Thomas join panel of 16 experts
    6 days ago

    Demolition workers destroy new Banksy artwork

    Artist confirms new work just hours after it was reduced to rubble
    7 days ago

    Countryside gets go-ahead for 258 London homes

    Third phase of Walthamstow's Marlowe Road estate regeneration approved
    6 days ago

    Hunt talks growth while hiking corporation tax

    Tax on company profits above £250,000 to hit 25% next month
    7 days ago

    UK Construction “key driver” in Balfour profit return

    Division back in the black with 91% of work now for "public sector and regulated industry clients"
    7 days ago

    Eleven developers face ban over Gove’s building safety contracts

    Housing secretary warns 'we are coming after you' as firms fail to sign contracts to remediate their unsafe buildings
    1 week ago

    Contractor services