The National Infrastructure Plan, announced by Prime Minister David Cameron at the CBI conference, is fundamentally flawed as it excludes the need for new housing, warns the Federation of Master Builders (FMB).

Brian Berry, Director of External Affairs at the FMB said: "The Government is right to be looking at renewal of the nation’s infrastructure but it cannot afford to ignore new housing provision as it contributes to the delivery of everything else. Economic growth is simply not sustainable without the delivery of new housing and the Government must show it is serious about investment in the UK's housing needs, when there are some five million people in the UK on the housing waiting lists."

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The FMB believes new housing provides the test bed for cutting edge micro generation technologies which help address the energy security and carbon emission reduction agendas.

Mr Berry continued: "Housing and regeneration developments also make billions of pounds worth of contributions to transport, and water management infrastructure as well as education and health through section 106 agreements.

"The Government is right to prioritize greening the existing housing stock through its Green Deal but it must not forget that the country desperately needs more housing if we are to have a sustained economic recovery. New housing schemes contribute to both paying for infrastructure projects and job creation and as such the Government needs to be giving house building a much higher priority."

(CD/GK)