The government is to open a construction bank to help manage its new public building projects.

It is expected the bank will take shares in private finance initiatives that will manage the construction of new hospitals and roads. Chancellor Alistair Darling is also expected to announce a new social housing fund, understood to worth £1 billion, it has been reported. The government has been advised to increase its investment in housing construction to help the UK out of recession.

The 2020 group - a collection of leading builders, construction experts and local councils - "significant investment is needed to keep supply going". Group chairwoman Kate Barker commented: "Support for housing today offers excellent value in terms of sustaining economic activity and reduces the risk of a very severe loss of capacity in the housing and related industries."By building more affordable homes and increasing its stock of social housing the government could help fight rising unemployment and stimulate the flagging housing market."Social housing waiting lists are rising. This package meets a real and urgent need," Ms Barker added.

Source: Direct News