Labour pledge to rebuild Britain's economy

UK Political Editor

Monday 1 October 2012

ED Balls will today speak to the Labour conference theme of "rebuilding Britain" by calling for a massive house-building programme to create 100,000 affordable homes and up to 750,000 new jobs.

GOAL: Ed Balls is congratulated by Shadow Health Secretary Andy Burnham after scoring in a match against the media yesterday. Picture: Reuters

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michael settle uk political editor

The proposal to kick-start the economy raises the prospect of 10,000 new homes in Scotland and a major boost to employment.

It will complement the Shadow Chancellor's call yesterday for a two-year stamp duty holiday for first-time buyers purchasing property worth up to £250,000.

Mr Balls will tell delegates that the policies will be paid for by using the £4 billion expected to be raised for the Treasury from the forthcoming auction of the 4G mobile phone spectrum. The National Housing Federation estimates the building of 100,000 homes would create more than 150,000 jobs in the construction industry and up to 600,000 jobs in the supply chain.In his keynote address, the Shadow Chancellor will tell the conference that the UK is just one of two G20 countries in recession."There is nothing credible about a plan that leads to a double-dip recession, thousands of businesses bust, a million young people out of work, billions wasted on a soaring benefits bill, and borrowing going up not down. Rising borrowing not to invest in the jobs of the future but to pay for the mounting costs of this government's economic failure," Mr Balls will say.He will describe this as the "fundamental truth": The deficit cannot be reduced if more people are on the dole, not paying taxes."That is why we must act now to kick-start the recovery, tackle the causes of rising borrowing and start to make our economy stronger for the future."The Shadow Chancellor will argue with 119,000 construction jobs lost in two years and a 68% fall in the number of affordable homes being built, "bold and urgent action" is now needed."With this one-off windfall from the sale of the 4G spectrum, let's cut through the dither and rhetoric and actually do something," Mr Balls will declare."Let's commit that money from the 4G sale and build over the next two years 100,000 new homes, affordable homes to rent and to buy, creating hundreds of thousands of jobs and getting the construction industry moving again. "Add to that a stamp duty holiday for first-time buyers. "A clear and costed plan to kick-start the economy and get people back to work. Building the homes that we need now and for the long-term, a vital step forward in renewing Britain's long-term infrastructure."Building our way out of recession and re-building Britain for the future." If a future Labour government were to introduce a plan for 100,000 new homes, the new Whitehall money would be Barnettised, ie the Scottish Government would get a 10% share. It could spend the money as it saw fit but the expectation would be that it too would prioritise infrastructure, particularly house-building.A source close to the Shadow Chancellor said: "We'd assume Edinburgh would take a similar route but, it's up to them."Mr Balls will also make clear a Labour government would be faced with tough choices, confirming he will instigate a "zero-based spending review" in the first year of government.He will say because the Coalition is pursuing the wrong policies, the hard times Britain is facing will last longer, so Labour "cannot promise to put everything right straight away".The Shadow Chancellor will add: "When we don't know what we will inherit, we cannot make any commitments now."Last night, the Scottish Government said it was doing "all it could" to support the housing industry, including a plan to deliver at least 30,000 affordable homes during the lifetime of the Parliament, backed by investment of at least £730 million. "Any funds coming to Scotland through Barnett consequentials will be given further consider-ation by Scottish ministers," said a spokesman.

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Labour pledge to rebuild Britain's economy

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