Sajid Javid calls on Philip Hammond to borrow £50billion — so ministers can green light the Government’s housing programme
He said there would be housing announcements in next month's Budget, and that the Government should be 'actively considering' borrowing more to invest in funds which would lead to more homes
COMMUNITIES Secretary Sajid Javid has called on the Chancellor to borrow £50bn to fund a major new government housing programme.
The Cabinet’s housing supremo wants the giant fund so ministers can commission developments themselves as the only way to ensure they actually go up.
And Mr Javid yesterday revealed he wants Philip Hammond to “take advantage of record low interest rates” to raise the cash.
He told the Andrew Marr Show: “I want to make sure we’re using everything we have available to deal with this housing crisis.
“We have to continue to be bold in this area.”
Sources have told The Sun that the figure Mr Javid has asked for in the Budget next month is £50bn.
Mr Javid also set a new target of building 300,000 houses a year to solve the chronic supply crisis that has priced millions out of home owning.
The number is up 50% from the 200,000 a year promised by the Tories two years ago.
The Communities Secretary dubbed the new figure as “very similar” to the huge scale of building in Harold Macmillian’s government of the 1960s, which has not been seen since.
Under Mr Javid’s blueprint, the new developments would be erected on government-owned land, to speed up the process and stop big builders from sitting on the sites thwy own for prices to go up.
He added: “I’m the first to admit, we have not seen enough housing delivery”.
The Cabinet minister’s bold public lobbying risks infuriating the Treasury, with just a month to go until Mr Hammond delivers his annual financial blueprint.
But he won the immediate backing of senior Tories for it yesterday.
Former housing minister Nick Boles dubbed Mr Javid’s ‘borrow to build’ bid as “very encouraging”, adding: “More power to your elbow Saj!”
Environment Secretary Michael Gove added in a tweet that Mr Javid was “absolutely right”
But Labour’s Shadow Housing Secretary John Healey said: “If hot air built homes, ministers would have fixed our housing crisis.
“Rather than set more targets they can’t meet, ministers should back Labour’s plan to build 100,000 genuinely affordable homes a year, including the biggest council housebuilding programme in more than 30 years.”