Section: Central Government

Responses to the Chancellor's Autumn Statement

Posted 06.12.12

The Chancellor's Autumn Statement included announcements on 120,000 new homes, welfare benefits and local enterprise partnerships. The following are typical of the responses from the housing sectors.

David Orr, Chief Executive: National Housing Federation

"The Autumn Statement has left more questions than it has given us answers."

"We welcome the Chancellor's commitment to building 120,000 new homes by using some of the funding set aside for infrastructure."

"The extra money made available to the Department of Communities and Local Government to buy surplus public sector land is welcome, but it is at a much smaller scale than we expected."

"The decision not to increase Housing Benefit in the private-rented sector in line with inflation, and to impose new limits on the amount that millions of others will receive in benefits, fails to take account of the overall impact of the major welfare changes already in the pipeline on residents and social landlords."

"The proposal to create a single housing pot for local enterprise partnerships raises a number of very important questions: will the money be ring-fenced, and will there be flexibility to move money to areas of greatest need?"

Grainia Long, Chief Executive: Chartered Institute of Housing

"The Country's chronic under supply of housing continues to generate misery for hundreds of thousands of families and individuals and it is crucial that ministers start to address this. Today's autumn statement makes it clear Government still hasn't recognised the scale of the crisis."

Brian Berry, Chief Executive: Federation of Master Builders

"The Chancellor should have taken the opportunity to support the Government's own Green Deal energy-efficiency initiative by introducing more incentives, including a lower rate of VAT on housing repair, maintenance and improvement work to encourage homeowners to take advantage of the Green Deal."

"The £5 billion for capital investment is good news and clearly shows the Government recognises the positive impact a growing construction sector has on the economy. However, the Chancellor should have done more beyond the measures to support 120,000 new homes already announced. That is just half the number of new homes needed each year to meet current demand."

Julia Unwin, Chief Executive: Joseph Rowntree Foundation

"The Government is giving with one hand, but taking away with the other.

"Investment in infrastructure is welcome and increases in the income tax threshold and scrapping fuel duty rises will make life a little cheaper.

"But snipping at the safety net and reducing the value of benefits at the same time will increase poverty and hardship for the most vulnerable. We're at risk of consigning the poorest to a decade of destitution.

"The Government knows the distinction between 'striver' and 'shirker' is entirely false. People move on and off benefits: in the last two years, one in six economically active people have claimed Jobseekers Allowance. So reducing welfare hits people who are doing the right thing and working hard.

"We are aware the Government needs to save money, but there is no such thing as a soft target in welfare."

Dr Mary Taylor, Chief Executive: Scottish Federation of Housing Associations

"Restricting the uprating of many working age benefits to lower than the rate of inflation to just 1% is the latest of a series of welfare cuts which, will be a further blow that hits the poorest and most vulnerable in our communities the hardest. The true extent of the impact will not be felt for some time, but the risk of rising debt and arrears is all too real.

"Although it appears that Housing Benefit for tenants of social housing has not been affected by the limit on increases of 1%, people on low incomes, including housing association tenants, will still be hit hard by the budget announcement and the forthcoming introduction of Universal Credit will merge all benefits together.

"A reduction in overall levels of benefit for working households at a time when prices are rising and jobs are scarce, will hit people and communities that are already struggling to make ends meet."


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Reporting on December 2012

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