Oxford East MP Andrew Smith has pledged to work with business leaders to get more affordable houses in Oxfordshire.

Chamber of Commerce leaders have welcomed the Cabinet minister's comments, but are cynical about Government promises to save £20bn nationally for investment into health, housing, education, transport and law.

Mr Smith, speaking at an Oxfordshire Chamber of Commerce meeting yesterday (July 16), said: "I will continue to work with local businesses, trade unions and community groups for more housing in the Oxford area.

"The shortage of housing is not only putting prices and rents beyond the reach of many local people, but causing problems for business and public services."

Keith Slater, president of Oxfordshire Chamber of Commerce, said he was glad Mr Smith was giving priority to the county's housing shortage.

He said: "A lot of people who work in Oxfordshire travel in, rather than being based here.

"The problem is there is nowhere left to build in Oxford.

"The solution has to be to find some way of adding more houses around the city without creating further traffic problems.

"Firefighters, police officers and nurses, people in public services, find it hard to buy houses.

"Employees of businesses find it hard to buy houses and it leads to a serious issue about recruitment and retention of staff.

"I had an employee a couple of years ago, a Brookes graduate. His wife worked in a retail business, and they couldn't afford to buy a house. They moved to West Sussex to do equivalent jobs, but could buy a house there on the same salaries.

"The chamber welcomes any money that can be used for more housing in the region."

Mr Smith, the Secretary of State for Work and Pensions, was speaking to the Chamber about the impact of this week's Comprehensive Spending Review, which set out Government financial plans for the next three years.

He said: "There will be extra investment in housing, health, education, transport and law and order and we are making £20bn efficiency savings nationally to help pay for it."

Christopher Quinton, president of the Thames Valley Group of Chambers of Commerce, said: "We are cynical about whether they are going to achieve the savings they promised. We have heard that before and it hasn't happened."

He said there was a need for more housing across the South East and warned that building on the Green Belt had to be considered sensitively, but without delay.

He added: "I certainly feel that Upper Heyford could accommodate a lot more housing."

Mr Quinton, managing director of Woodcote-based software firm Halarose Ltd, added: "I had two members of staff travelling from Birmingham, and after three years, they decided enough was enough."