4G auction revenue to be spent on new homes

4G auction revenue to be spent on new homes

Profits made by the auction of the 4G spectrum should be used to "kick-start the economy", the Labour party has claimed.

Shadow chancellor Ed Balls believes that the money could help to build over 100,000 affordable homes and create tax breaks for first-time buyers.

Mr Balls is expected to use his speech at the Labour party conference to note that the lower estimate of the 4G revenue would be enough to fund a two-year stamp duty holiday on homes up to £250,000.

He also believes the money from the auction will help to provide shared ownership, affordable rents and social housing.

He will say the need for a stimulus is now "even more urgent"; due to the fact 119,000 construction jobs have been lost in two years, alongside a 68 per cent fall in the number of affordable homes being built.

"In the good times, Labour used every penny of the £22 billion from the sale of the 3G licences to pay off national debt. But in difficult times, we urgently need to put something back into the economy," he will explain.