Any government cuts to housing investment could place jobs at risk in Liverpool and plunge the country into an even deeper housing crisis, according to the charity Shelter.
As the Treasury prepares to announce deep spending cuts across government, new analysis by the housing charity shows that for every pound cut from public investment in housing, the wider economy will take a hit of at least £3.50.
Shelter is warning that a possible cut of £760 million to this year’s housing budget will mean 12,625 less homes built, 19,000 job losses and a cost of £2.7 billion to the economy.
This could place jobs at risk in Liverpool where 15,700 people are employed in the construction industry, 9% of all those in work. This is above the national average of 7.7 per cent.
At a time of record unemployment, Shelter is warning that Government investment in new homes must be ring-fenced to continue to support house building during the downturn so that homes are delivered and jobs and skills in Liverpool protected.
Campbell Robb, Chief Executive of Shelter, said: “On top of the 17,564 households on waiting lists in Liverpool who desperately need new homes, this research also shows how crucial house building is to the economy, providing vital jobs and economic growth both on a local and national scale.
“With the private sector hit hard by the recession, public housing investment has been critical in getting homes built. Cuts now would cause one of our key industries to continue to flounder, bringing house building to a standstill at a time when the need for more homes has never been greater.
“As Government decides where the axe will fall, it must consider the impact that cutting housing investment will have on local employment in Liverpool. If the overarching aim is to stabilise our already fragile economy, cuts now just don’t make economic sense.”
Shelter is warning that job losses in the construction industry would mean the loss of skills that could take over a decade to recover.
Campbell Robb continued: “We know from the last recession that it took years for the construction industry to recover and we simply cannot afford let this happen again.
It’s absolutely crucial we protect skills and expertise in the industry so that when the private sector picks up the capacity is there to get housebuilding going quickly.”
“Shelter figures show that the shortage of affordable housing in Liverpool means it will already take nearly 5 years to house everyone on its waiting list. Each year that we fail to deliver enough homes the backlog will grow greater, pushing us deeper and deeper into a housing crisis that will become impossible to get out of.
“We owe it to future generations to continue investment now so they are not saddled with this legacy.”
Later in the year Shelter will be releasing further research quantifying the social and economic return on housing investment in areas including crime, health and education.
Shelter’s Local Housing Watch provides a range of information on housing need in your local area including waiting lists and the delivery of affordable homes.
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