Javid plans housing borrowing

Communities secretary Sajid Javid has suggested that the government could borrow money to invest in new housebuilding.

Speaking on the BBC’s Andrew Marr Show, Javid made a distinction between the deficit – “which needs to keep coming down” – and “investing for the future, taking advantage of record low interest rates”. He added that more investment needs to be put into the infrastructure to support housing.

His distinction, essentially between ‘good’ debt and ‘bad’ debt, appears similar to suggestions made by Australian Treasurer Scott Morrison in April, when he backed defining the difference between spending on infrastructure and assets that will boost the economy and provide future income, and the debt incurred from everyday spending.

Javid also suggested that the upcoming Budget is likely to see new announcements relating to housing investment.

“The private sector has the biggest role to play and that is where we need to see more delivery,” he added, saying that the government has a role to play in providing more land for development, as well as highlighting efforts to support local authority plans.