Explain how the governments investment in affordable homes


Problem

In Autumn 2021, Rishi Sunak, then Chancellor of the Exchequer announced a new government spending programme in the United Kingdom called the 'Affordable Homes Programme 2021- 26' (AHP). Under the programme the Government will provide £11.5bn which will include the costs of delivering 180,000 new homes.

More information is readily available discussing this, but these websites may help you

National Housing Federation (2022) Affordable Homes Programme 2021-26.

Gov (2022) Budget and Spending Review - October 2021: What you need to know.

Using appropriate economic theory explain how the Government's investment in the Affordable Homes Programme is expected to lead to growth across all sectors of the economy. Diagrams should be used where appropriate.

Circular Flow of Income including Government Income and Expenditure.

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