Heed Canada’s warning
Canada is frequently cited as the ultimate example of how to get out of a crippling budget deficit. In 1993 it cut spending by a fifth and within four years produced a budget surplus.
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To a cuts-hungry UK government this is an example that cannot be ignored. As we report this week, however, the cuts were painful and dealt the housing sector and Canada’s disadvantaged a severe blow. Prior to 1993, Canada built around 25,000 social homes a year. Afterwards it did not build any. Benefits were slashed and homelessness soared.
One housing professional sums up the current situation, saying: ‘My view is that in Canada we no longer know what social housing is.’ The UK might not sink so low - thanks to the housing benefit system and more plentiful social housing. However, the direction of travel is now clear. Social housing professionals need to ensure they and their local MPs are aware where the cuts road can lead.