The property and construction sector will certainly feel its share of the general pain, and when this sector hurts, the whole economy hurts more, says Mark Goodwin, RICS Director of External Affairs.

"The Government is gambling with the economy by reducing Communities and Local Government capital spending by 74% over the next four years. This will have a significant effect on housing supply, especially on social housing which is already at historically low levels. As well as reducing the number of affordable homes this could have a wider impact on the housing market where continued low supply will create affordability issues, particularly for first time buyers,” said Goodwin

"This comes on top of a 60% reduction in spending on the construction and refurbishment of schools. Cuts like this risk endangering the hugely important construction sector - every £1 spent by the Government on building projects generates around £3 for the wider economy. Cutting construction spending will have serious negative impacts including long term unemployment, loss of skills and outdated infrastructure preventing economic growth.

"The plans to tackle inefficiency in public sector asset management by creating two new vehicles for the estate in London and Bristol led by the Government Property Unit are welcome. But the really big savings are to be made in the bulk of the estate in the regions. Publication of asset registers should help get this moving.

"Everyone realises that big cuts in spending are needed to reduce the deficit. The axe has been wielded, but next years Budget provides an opportunity to support innovation and growth by making fiscal adjustments that will have a big payback, such as cutting VAT on repair and refurbishment of buildings, supporting investment in carbon reduction measures, reinstating empty commercial property rate relief and changes to the tax system to support greater investment in residential property," concluded Goodwin.