Immigrants and other people who wished to move into an area where they had few links would be moved down the priority list – a policy which will raise concern among Labour backbenchers who have warned the leadership not to get panicked into populist policies by the BNPs recent electoral success.
Now, we know that house ownership increases the unemployment rate. Having to sell up and buy again if moving for the sake of a job obviously makes the labour force less mobile (as against a purely private rental market).
Social housing is even worse, as moving across a local authority boundary area takes years long than selling a house. And now Brown has just made it even worse. And one effect of this change will be to increase the structural (as opposed to simply cyclical with aggregate demand) level of unemployment.
Well done Gordo!