New homes plans put on hold

PLANS for 12 new council homes have become the latest victim of Government cuts designed to tackle the nation’s debt.

Before the election, ministers announced they were providing £265,000 to help with the construction of four properties in Clyde Street, £322,500 for five homes in Hawthorn Road and £210,000 for three units in Rufford Close, all in Oldham.

The cash was part of £58 million allocated to various local authorities across the country for new-build, in an effort to help the construction industry during the economic crisis. Projects under the Kick-start scheme, which provided subsidies for developments that would usually be funded privately, are also under threat.

Last night, the new Conservative and Liberal Democrat administration was engaged in a bitter war of words with Labour — as it accused the old Government of making promises when the money simply wasn’t there.

The Department for Communities and Local Government has now announced it is placing a number of schemes on hold until the Budget on June 22, when a final decision will be announced.

A statement said: “Full scrutiny of expenditure has showed that the previous Government made commitments that were not fully and securely funded.”

Councillor John McCann, Oldham cabinet member for regeneration and environment, said: “Obviously we are disappointed by the decision because the borough is in great need of additional social rented houses. However, we are hopeful the schemes will go ahead after the announcement on June 22.

“Even though the funding has been put on hold, staff are continuing to work on the schemes so that they can proceed promptly if they are given the green light. Other councils across the country have been put in similar positions.”

Oldham West and Royton MP Michael Meacher said it was “utterly deplorable” that bankers’ bonuses were not being taxed much more robustly and that housing was instead being targeted.

He said: “For people in Oldham this is a dire situation. It is an essential not a luxury. I am very angry housing is taking its share of the cuts.”