The housing industry is key to the recovery of the UK economy, Chancellor Alistair Darling said today in his Budget 2009 speech.

He said ‘the key to the health of our society is the long term supply of housing’ which was why the government would contribute more to make sure that homes were still built.

He said £400m would be provided to the house building and construction industry to kickstart stalled schemes. A further £100m will be provided to local authorities to build energy efficient housing.