Former Home Secretary David Blunkett told councillors the Government should "borrow for investment" to draw the country out of recession at a dinner in St Albans.
Mr Blunkett spoke at a dinner at the Quality Hotel, in London Road, on September 13 and advised borrowing long-term to build would mean that each house built creates two jobs, keeping money in this country.
In answer to a question from London Colney councillor Jacob Quagliozzi, the MP for Sheffield agreed that housing was a key to improving our economy.
He said: "We should create jobs and invest in our own communities.
"We should do this with housing which has two advantages - when you invest in housing you invest in young people and in productivity."
Mr Blunkett also expressed his concern for young people after the removal of the Educational Maintenance Allowance and rise in university fees.
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