Jack Dromey MP, Labour’s Shadow Housing Minister, responding to the Inside Housing survey on the disastrous failure of the New Homes Bonus said:
“This is yet another example of government failure to tackle the housing crisis. The day after the launch of the Tory-led Government’s so called housing strategy we learnt that their 60% cut to the affordable budget had led to a 99% fall in affordable housing. Now we learn that their flagship housing policy, the New Homes Bonus, heralded as the means to deliver homes across the country, is failing.
"We knew the New Homes Bonus was unfair, distributing money from the most deprived authorities to the most affluent and now we know it doesn’t even work. Designed to incentivise new house building, cash-strapped local authorities are being forced to divert the money, including to protect essential services.
“Their housing policies are failing and George Osborne's mismanagement of the economy is making things worse, holding back house building. While yesterday's GDP figures showed the economy overall shrank by 0.2%, the downturn in the construction sector was even more steep, shrinking by 0.5%. It is clear that housing is simply not central to the Government’s thinking.
"Labour recognises the importance of housing to the economy, and that is why it is central to our plan to getting the economy moving, building Britain out of near recession.”