Chancellor of the Exchequer George Osborne delivered his 2011 Autumn Statement to Parliament

The Autumn Statement provides an update on the government’s plans for the economy based on the latest forecasts from the Office for Budget
responsibility.

The Chancellor said when the current public sector pay freeze ends – in 2013, for most – pay rises for public sector workers would average 1 per cent for a further two years saving more than £1 billion.

Most departments will have their funding cut to reflect the reduced pay bill. However, health and schools will be allowed to retain the savings “to protect those budgets in real terms”, he told MPs.

In his Statement the Chancellor restated a number of policies trailed in last week’s Housing Strategy for England, these include:

The government also published an updated National Infrastructure Plan 2011. This contains major commitments to improve the UK’s transport and broadband networks as well as steps to attract major new private sector investment.

In response to the Chancellor’s Autumn Statement, David Orr, Chief Executive of the National Housing Federation, said:

“The Government is ploughing money into infrastructure projects and building schemes which it hopes will give the economy an immediate boost.”

“But it has largely ignored the one industry which would provide the Treasury with the biggest bang for the taxpayers’ buck: house-building.”

“A public investment of £1bn – matched by £8bn from housing associations – would build 66,000 shared ownership homes for people on low to middle incomes, create 400,000 jobs and in doing so save the taxpayer £700m in job seeker’s allowance not to mention the added savings from housing benefit and increased tax revenues.”

The Federation also reports that a VAT exemption for shared services has potential to provide significant savings to the sector.