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More new homes required – CBI

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Boosting the construction of new homes should be the main priority of George Osborne's forthcoming Budget, according to the CBI.

The business lobby group is urging the government to create tens of thousands more houses and flats, particularly affordable homes.

It said that 50,000 new affordable homes should be built at a cost of £1.25bn \that would help plug the housing shortage and create around 75,000 jobs.

Business lobby groups, including the British Chambers of Commerce and the manufacturers' group the EEF also made their Budget suggestions today.

The BCC would like the government to support building of 100,000 new homes by 2015. It said its plan would cost almost £30bn over three years.

Although all three organisations say the government should stick to its plans to cut borrowing and reduce the deficit, the BCC does believe that the government should consider borrowing more if there is no sign of improvement in the economy within the next six months.

John Longworth, director general of the BCC, commented: "If within the next six months there is no prospect of growth... you might have to consider actually borrowing more money but you should only do it to fund areas that the market would forgive."


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