House building ‘would kick start economy’

AN Oldham MP last night called on ministers to put social housing new build at the heart of getting Britain’s economy moving fearing a 2.5 per cent cut in VAT was simply not enough.

Oldham West and Royton MP Michael Meacher told MPs not only would such a move help thousands languishing on waiting lists across the country but kick start the ailing economy.

The Labour MP spoke out as frustration is growing among Labour backbenchers over the Government’s rescue plans for the economy. Many MPs fear a VAT cut was not the right way.

Mr Meacher said: “Going shopping last week I was offered a little over a pound off a £35 item. It really isn’t doing anything. It seems obvious that at a time when consumers are already being offered much bigger discounts, the VAT cut will have little effect.”

He continued: “When shops are putting their own discounts of up to 50 per cent on things, 2.5 per cent is nothing — it is such a dead weight. The cost of this is enormous but the effect is tiny.”

Instead Government should increase public expenditure on social housing to help more than 8,000 families in Oldham waiting for a home, he said.

“We need an increase in social housing. The costs are very considerable but they will multiply in benefits. The effect will be provide much-needed homes at the same time as providing jobs and getting the economy going.”