The Homes and Communities Agency (HCA) announced the closing of Local Authority New Build (LANB) as a national programme. The news about the closing came after the Treasury announced this week that it was cutting 220 million from HCA’s budget. This cut is in addition to the May budget cut of 230 million pounds.
All of HCA’s developments had been put on hold waiting for the decision. Those on hold were Standard Affordable Housing, 214 million pounds of the Kickstart scheme and the Local Authority New Build.
Sir Bob Kerslake, HCA Chief Executive, said the agency would approach the regional teams and work out which schemes should be cut by the end of the month.
The new builds were set to usher in a solution to ease the housing crisis across the UK. Baroness Hanham told the House of Lords in reference to Budget cuts: “There will be casualties. I don’t have any doubt that there will be casualties.”
Labour’s Lord McKenzie warned it “will force many to move or end up homeless and create ghettos of the poor.”
George Osborne’s proposed Budget cuts are to cut 25 per cent from government spending. New build schemes will be but one of many projects that will have to make concessions.