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Government Refuses to Fund New Affordable Homes

The Government today dismissed a proposal to build 100,000 homes and create 600,000 jobs by using money from selling 4G licences.

Alex Cunningham MP, Member of Parliament for Stockton North, asked the Ministers in the Department for Communities and Local Government whether they would use the several billion pounds from the 4G mobile spectrum to fund social and affordable homes.

The sale is estimated to bring in a minimum of £3bn, which would be enough to fund 100,000 new affordable homes and back people aspiring to own their own home by introducing a two-year stamp duty holiday for all first time buyers purchasing properties up to £250,000.

This announcement is in addition to the 25,000 homes for social rent Labour has already said should be funded by part of the funds raised from a tax on bank bonuses. The National Housing Federation estimates that the building of these 100,000 homes would create over 150,000 jobs in the construction industry and up to 600,000 jobs in the supply chain.

Alex MP said:

“It is disappointing that the Government has turned down the opportunity to fund 100,000 affordable homes.

“This isn’t money that would have to be borrowed, cut from other areas of spending, or even raised through tax increases. This is an opportunity to use the 4G auction to make a real difference to hundreds of thousands of lives, and help inject life back into the stagnant construction industry.

“The Conservative-led government has cut the budget for new affordable homes by 60 per cent – from an investment of £8.4bn in the three years 2008-11 to just £4.5bn in the four years 2011-15. They should take this opportunity to improve their shocking record on building affordable homes.”