Govt urged to remove borrowing cap to boost home deliveries
The government is being encouraged to remove its present borrowing cap for councils across the UK in order to promote greater levels of home building over the months and years ahead.According to the Local Government Association (LGA), there are currently 1.8 million people on council social housing waiting lists up and down the country and without a significant increase in the construction of new homes to house these individuals this figure is unlikely to come down anytime soon.Overall, nine councils have currently reached their overall budget limits for housing - meaning around 40,000 individuals will not benefit from new home developments in these area - and unless forthright action is taken soon, more local authorities will join this group in the near future.Chairman of the LGA's Environment and Housing Board Mike Jones commented: "The chancellor has an unrivalled opportunity to use this Autumn Statement to create jobs, provide tens of thousands of homes and help the economy without having to find a single extra penny."New homes are badly-needed and councils want to get on with building them. The common sense answer is for the Treasury to remove its house building block and let us get on with it."The organisation states that should caps be removed, this would allow for the construction of up to 60,000 new homes over the next five years - ensuring more people could be given access to much-needed social housing in many parts of the country.Mr Jones added it is up to the government to help councils kick-start economic recovery in their area through the building of new homes, but at present many councils feel their "hands are being tied" due to spending limitations beyond their control.As such, the LGA will be waiting with baited breath to learn of the outcome of its lobbying efforts when the chancellor unveils his annual Autumn Statement in full tomorrow (December 5th).
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