House building cuts will drive building into recession

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As the Observer notes:

Housebuilding in Britain will "fall off a cliff" this year due to a "catastrophic" combination of financial cutbacks and changes to the planning system, the government was warned last night. 

The National Housing Federation, which represents England's housing associations, predicted the most vulnerable in society will be the hardest hit, with the number of affordable homes built this year in England slumping by as much as 65%, to 20,390. This would be the lowest number of affordable homes built since 1990, with profound consequences for the 4.5 million people on waiting lists across the country.

The federation said the private sector would also be affected and expressed fears the total number of homes that will be built this year in England would fall below the 100,000 mark, the lowest level for almost a century. Similar problems are predicted for Wales and Scotland.

Three obvious observations follow.

First, this is a front line cut, making a mockery of ConDem claims.

Second, this makes a mockery of the idea that cuts will only impact the public sector. House builders are in the private sector.

Third, this makes clear there is no doubt we need a Green New Deal: we propose how to deal with this issue.