Construction union UCATT are demanding that the Government does not remove previously committed funding from the council housebuilding programme.

The previous Labour Government announced two rounds of council housebuilding, in September 2009 and January 2010, which would result in the building of 6,000 new council properties. The Labour Government had agreed to supply grants to cover half the cost of the projects, with individual local authorities supplying the remainder.

It is estimated that the projects will create 12,500 construction jobs and the contracts also specified the compulsory training of construction apprentices and the recruitment of local workers.

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However shortly after the Coalition Government took office it was announced that all of the allotted schemes, which had not finalised their "grant agreement", would be put on hold.

Following a parliamentary question from Natascha Engel MP, the Department of Communities Local Government failed to give assurances that the remaining developments would receive the promised funding. Andrew Stunnell MP the junior Liberal Democrat minister at the DCLG, said: "Decisions on all other schemes will be made after the Emergency Budget on 22nd June".

Alan Ritchie, General Secretary of UCATT, said: "The decision to delay these vitally needed homes and the threat that these schemes could be axed is outrageous. Not only will new homes provide accommodation for homeless families but it will also help to further reinvigorate the housebuilding industry and provide vitally needed jobs and training for construction workers."

(CD/GK)