The governmentâs spending watchdog the Audit Commission warned that the recession and rising unemployment will cause a wave of social problems in the coming year. The commission found the recession is already causing more homelessness in one-third of local authorities, while two-thirds predict the problem to worsen next year. The report said that the slowdown in house building, due to a cut in local authoritiesâ funding, had reduced the amount of new social housing and therefore the number of social properties available to let. Two-thirds of councils have reported an increase in applications for housing and other benefits.
