Kickstart funds under pressure as spending cuts hit CLG hard

June 1, 2010
Uncontracted Kickstart schemes are the early victims of the new coalition government’s drive to cut expenditure by £6 billion this year. The chancellor, George Osborne, announced details of the savings on May 24 and included £150 million of cuts in the previous government’s housing pledge. Of this, £50 million is expected to be Kickstart money not yet signed up – 20 to 25% of the uncontracted funds. The other £100 million is set to be cut from the affordable housing budget, which is expected to be achieved through reduction in low cost home ownership programmes. <br> <br> The chancellor’s cuts hit CLG hardest with £780 million of savings to be made. It is understood that £600 million of housing money, including the rest of the housing pledge, is awaiting final confirmation from the Treasury and as such is also at risk. Given the savings demanded at CLG, any expenditure must now be under some threat. The coalition also confirmed that it is to save money on quangos and confirmed the demise of the Infrastructure Planning Commission. The future for the Homes and Communities Agency is not yet clear, but again budget cuts are expected. <br>

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