"We need Housing Associations to be freed up going forward to build the affordable housing needed"
- CBI director general John Cridland
The time is running out for George Osborne's plans to turn-around the country's economic fortunes, the U.K. business groups said Monday, calling for shifts in government spending towards growth measures, including a major house-building drive. The CBI and the British Chambers of Commerce claimed for a major cut in business tax, namely slashing corporation tax to 11% in case the government is not able to spur growth in the struggling economy. Earlier, the government pledged to cut corporation tax, which currently stands at 24%, to 21% by the next year. Nation's government should also make direct capital investment in housing and create 100,000 additional new homes by 2015. The CBI also said that around £2.2 billion should be moved from current spending in order to build 50,000 new affordable homes, creating 75,000 additional working places.
John Longworth, director general of the BCC, said: "If within the next six months there is no prospect of growth... you might have to consider actually borrowing more money but you should only do it to fund areas that the market would forgive."
CBI director general John Cridland told the BBC the plan would address a range of problems: "We need Housing Associations to be freed up going forward to build the affordable housing needed."
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