The former director-general of the Confederation of British Industry has called for the Government to stimulate house building.
Sir Richard Lambert said the government should ‘change tack’ as the economic climate worsens.
The former CBI director said: “Interest rates are low, so the Chancellor should be getting some jobs in the economy.
“The obvious way to do that is through the construction sector, the obvious need there is in housing. So I think he should be thinking about some bold scheme on housing.”
He added an initiative to build up to 100,000 new homes would be the scale of stimulus needed.
He was talking to BBC Radio 4’s Today programme, about the news that the Bank of England is expected to downgrade growth forecasts as the double-dip recession intensifies.
The Governor of the Bank of England, Sir Mervyn King said today he expects no growth this year in the Bank’s quarterly inflation report.
Just three months ago he was predicting 0.8% and even a bounce back of 2% in his forecast a year ago.
Mike Leonard, Director of the Modern Masonry Alliance, said: “The evidence is overwhelming, the time for waiting has expired. We need a major house building program now to turn around our economy.
“Let’s build on the Olympic success and go for Gold for Jobs and Growth. 25000 additional public rented homes and a 12 month cut in VAT for home improvements will win Gold for Team GB.”