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Speaking at a hustings event in Westminster organised by 好色先生TV and sister title Property Week, Shapps defended his policy of allowing councils to set their own housing targets, which housebuilders fear will lead to a hiatus in construction.

Shapps has previously outlined his policy of giving councils six years鈥� worth of council tax for every home built, thereby providing an incentive to allow more housing development.

Responding to a challenge by Labour MP and former housing minister Nick Raynsford that the policy was unfunded and would cost the Treasury billions, Shapps said: 鈥淲hat the policy clearly says is the money comes from the overall council settlement, which is about 拢30bn. It鈥檚 very simple. By definition areas that decide not to expand will find life tougher, and may have to raise council tax on their residents. It鈥檚 a really strong incentive.鈥�

Frankly, you won鈥檛 ever be allowed by the Treasury to do this

Nick Raynsford

Shapps then confirmed the policy would punish 鈥淣imby鈥� councils, many of which are in traditional Conservative regions in the South-east.

His statement comes despite last September鈥檚 conference pledge by shadow chancellor George Osborne that council tax would be frozen for the first two years of a Tory government.

Raynsford said: 鈥淵ou only have to do the figures to see that your scheme would cost billions of pounds, but you say there isn鈥檛 any money available. It鈥檚 completely non-credible and you frankly won鈥檛 ever be allowed by the Treasury to do it.鈥�