Budget 2012 - Effects on the Housing Sector

This year's Budget concentrates on reforms to the tax system that aim to reward work and support growth.  In his speech, Chancellor George Osborne was keen to point out that his budget was 'fiscally neutral' - ie all spending would be paid for by cuts elsewhere.

Key announcements affecting social housing include:

    *a cap on the additional costs of Universal Credit of up to £2.5bn a year in the next spending review

    *a consultation on the use of social housing Real Estate Investment Trusts (in Finance Bill 2013)

   *a pledge to 'take action' if HRA reform increases public borrowing by current OBR estimates

Read more on the CoalitionWatch blog.