GEORGE OSBORNE’S boasts that he is leading Britain to a building boom were dealt a blow yesterday by a sharp slump in construction.

The Chancellor repeatedly claimed “we are the builders” in his speech at last year’s Tory conference and promised the biggest house building programme since the 1970s.

But construction output fell by a shocking 3.6 per cent between March and February due to declines in both new work being carried out and existing maintenance activity, according to the Office for National Statistics.