It hasn’t taken George Osborne long to start breaking his promises. A couple of years ago the Housing Association sector negotiated a ten year agreement that rents would increase each year by the consumer price index (as measured in September) plus 1%. This was agreed so that Associations could prepare business plans with certainty and borrow funds to invest, giving lenders a high degree of confidence that they would be able to afford their loans.
Based on this promise from George Osborne and the government, Housing Associations have prepared plans to develop much needed new homes in mixed communities designed to meet as many needs as possible. But now Osborne has torn up his promise and is forcing Associations to reduce rents by 1% a year for four years – that’s a huge cut in income for businesses that had tried to work in partnership with government to tackle the housing crisis.
So, businesses beware. GEORGE OSBORNE IS A CHANCELLOR WHO BREAKS HIS PROMISES – you can’t trust what he says!