London will be hit hard by cuts to new homes, Shelter warns

ANY Government cuts to housing investment will lead to job losses in London and plunge the country into an even deeper crisis, the national homeless charity Shelter warns today. For every � cut from public housing, the wider economy will take a hit of �3.50, it claims

By Mike Brooke

ANY Government cuts to housing investment will lead to job losses in London and plunge the country into an even deeper crisis, the national homeless charity Shelter warns today.

For every � cut from public housing, the wider economy will take a hit of �3.50, new the housing charity claims.

A possible cut of �760 million to this year's housing budget will mean 12,600 fewer homes, 19,000 job losses and a �2.7 billion cost to the economy, it fears.

"There are already 354,000 families on London waiting lists who desperately need new homes," said Shelter's chief executive Campbell Robb.

"The private sector has been hit hard by the recession, so public housing has been critical in getting homes built.

"Cuts now would cause one of our key industries to flounder, bringing house building to a standstill at a time when the need for more homes has never been greater."

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Government investment in new homes must be ring-fenced during the downturn, Shelter urges. The Chancellor decides on Tuesday where the axe will fall.