Construction Union UCATT have cautiously welcomed the announcement by Housing Minister Margaret Beckett that councils will be given greater control of their funds, allowing them to build a greater number of council houses.

However the union are calling on the Government to take more radical measures in order to tackle the growing homelessness problem in Britain, meet Government targets on housing and to help kick-start the construction industry.

Alan Ritchie, General Secretary of UCATT, said: "This announcement is to be welcomed. Allowing councils the ability to once again build council housing is long overdue. It is scandalous that successive Governments have prevented councils from building homes. In the history of social housing local authorities have been the only organisation which has ever successfully met peoples housing needs."

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There are currently over 63,000 households classified as homeless in England and a total of 1.6 million people on housing waiting lists.

The housebuilding sector is the worst hit section of the construction industry. In the last 12 months thousands of skilled construction workers have lost their jobs.

UCATT are calling on the Government to greatly increase investment in social housing for rent and that local authorities should play the leading role in building new homes.

Mr Ritchie added: "We need radical action from the Government. Increased investment in social housing will provide homes for the homeless while also ensuring that skilled construction workers get back to work. This will also help to return confidence to the entire construction industry."

(CD/JM)