Affordable housing and tackling homelessness remain spending priorities for the Welsh Assembly Government, said Deputy Minister for Housing, Jocelyn Davies AM.

Spending plans show a year-on-year increase in funding of £6million to £157million in 2010-11.

An extra £1million for 2010-11 has been allocated to help people who are at risk of losing their homes because of the recession.

Ms Davies AM said: "It is vital that we rise to the challenge of the recession and build on our success so far. In July, I was delighted to announced that due to Assembly Government funding and action that we had already created 3,252 affordable homes, which was more than half way towards our 6,500 target.

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"Despite the economic downturn we are not shying away from this target and our achievement is all the more impressive in view of the change in the economy since we first set out our aim in our One Wales document in 2007."

Capital funding for 2010-11 is down partly because the Assembly Government 'brought forward' this money in 2008 as part of its reaction to the credit crunch. A total of £40 million which was planned for spending on building and buying affordable home in 2010-11 was spent earlier to provide an important fiscal stimulus to the Welsh economy and helped safeguard jobs, particularly in the construction sector.

The extra £1million for homelessness will be used to help those at risk of losing their home in the current economic climate.

(CD/GK)