THE TORIES claim that Labour’s plan to build 200,000 homes each year could curb infrastructure projects.
Due to shadow chancellor Ed Balls’ promise not to increase borrowing, the £2.61bn a year required to meet the housebuildng target would have to come from funds allocated to infrastructure and investment.
The Tories said this could risk the funding of road projects such as the A303 Stonehenge tunnel.
Transport secretary Patrick McGloughlin told City A.M.: “Ed Miliband’s reckless spending pledges would put our infrastructure at risk. Jobs and the success of businesses around the country are dependent on the road and rail investment we’ve fought hard to secure. Labour would jeopardise that in order to pay for an arbitrary housing target, which they plucked out of thin air because they thought it sounded good.”
Labour rejected the claims: “This is more desperate nonsense from the Tories. Their figures are incorrect, and they’re wrong to say Labour will not go ahead with infrastructure projects”.
In January, the Lloyds Banking Group Commission on Housing called for 200,000-250,000 new homes to be built a year, for the next decade.