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Spending cuts 'mean no affordable housing'

Tuesday, 19 October 2010 5:20 PM

The government will only be able to afford to build one affordable new home per week after the spending cuts, a campaign group has said.

According to the National Housing Federation (NHF), a total of just 243 houses will be built before March 2015 in London and the south-east.

This is a stark reduction in the number of affordable houses the government built in 2009/10, which came to 30,000 in London and the south-east alone.

The NHF predicts that cuts of 50 per cent will be announced at the spending review tomorrow and that this will have a knock on effect for the construction industry.

Figures found that were this to happen, 156,000 jobs in the construction industry would be either cut or not created.

Federation chief executive David Orr said: "Such a slump in affordable housebuilding in London and the south-east would not only be bad news for millions of people on waiting lists in the region, but it would be a hammer blow to the regional economy - which should be the powerhouse of any expected economic recovery."

George Osborne is expected to unveil the full extent of the spending cuts on Wednesday (October 20th) during the annual spending review.

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