In an open letter to the Chancellor, published in the Sunday People, he said: “George, you must build more houses – it helped get Britain out of the depression in the 1930s. Most parts of the country are short of homes so we could do with tens of thousands more.”
The Labour MP said Osborne should simply “take urgent action to promote growth”.
Chancellor George Osborne and the Bank of England have given up on promoting economic growth and current policies could cause “irreparable damage”, Alistair Darling has warned.
However, the government said Darling presided over the country’s biggest post-war deficit as Chancellor and failed to regulate banks effectively.
Darling said the coalition should spend more on homes, railways and a third Heathrow runway, the BBC reported.
“Your policies since 2010 simply haven’t worked, you need another plan – call it plan B, call it whatever you like,” the letter said.
Darling also said the Bank of England should halt its programme of quantitative easing until banks increase their lending.