The Office of the Deputy Prime Minister received a significant boost in its housing budget, which will rise from £6 billion now to £7.6 billion in 2005/06.

The chancellor is also keen to see an end to the hundreds of millions being spent on keeping people in bed and breakfast accommodation.

Forum Response: Association of Teachers and Lecturers

Gerald Imison, deputy general secretary of the Association of Teachers and Lecturers, told ePolitix.com: "Proposals for low cost housing are welcome in the short term but in the longer term they just serve to mask the real issue of inadequate salaries. Teachers would rather have a decent wage than a micro-flat."

Forum Response: National Housing Federation

Jim Coulter, chief executive of the National Housing Federation, told ePolitix.com: "We are pleased that government has listened to the Federation and housing associations across the country. It's good to hear a chancellor who recognises that healthy housing markets and neighbourhoods are the backbone of communities, and have an essential role to play in helping to achieve reform of public services .

"The headline additional £2.5 billion investment for housing over the next three years and more funding for neighbourhood regeneration can only be good news. The detail will need careful analysis. As well as providing more affordable homes in high demand areas, it will also help reduce homelessness and make a start on renewing areas where the market has been failing.

"The announcements also signalled potential changes to way that housing associations are regulated and funded, which will require careful thought. We do not want extra bureaucracy or double regulation. The Housing Corporation's successes should be built on, and not undermined."

Forum Response: Construction Products Association

Michael Ankers, chief executive of the CPA, told ePolitix.com: "The £1 billion increase in the housing budget to improve the quality of existing social housing and to ensure the availability of more affordable housing for key workers is to be commended."

Forum Response: Shelter

Ben Jackson, director of external affairs at Shelter, told ePolitix.com: "This is a considerable financial investment from government, signalling a firm commitment to funding affordable housing.

"We are delighted to welcome this announcement, but it is crucial this money is targeted at those suffering the misery of homelessness, if it is to help those most in need."

Forum Response: Royal College of Nursing

Dr Beverly Malone, general secretary of the Royal College of Nursing, told ePolitix.com: "Investment in new homes and low cost home ownership for key workers will be a boost for nurses working in the south east - an area where many nurses are struggling to find affordable accommodation. It is important that nurses see this implemented quickly to combat nurse shortages in this area."

Forum Response: The Woodland Trust

A spokesman for The Woodland Trust told ePolitix.com: "With regard to planning, we are supportive of the increased investment in local planning authorities to enable them to improve planning procedures, but are concerned at the potential implications for important habitats such as ancient woodland of the housing development proposals.

"It is important that such housing development and its associated infrastructure is focussed upon urban and brownfield sites."

Forum Response: Commission for Architecture and the Built Environment

A spokesman for CABE told ePolitix.com: "We welcome the extra money for new housing in the South East.

"However it is important not to repeat the mistakes of the past. We need to build new neighbourhoods and so any scheme, be it public or private, should have to pass a quality test before being given approval."