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Ministers were today accused of “fuelling hostility” towards immigrants in London by failing to ensure that hundreds of thousands more homes are built.

Senior Labour MP Margaret Hodge, pictured, attacked a “coterie of men” at the heart of power, including Mayor Boris Johnson, for focusing on grand projects rather than doing more to tackle the housing crisis.

Speaking in the Commons debate on the Queen’s Speech, the Barking MP said: “The Government’s failure to act where they can simply fuels hostility against migrants and breeds division rather than supporting cohesion and harmony.”

More than half a million new homes are needed by 2021 in London, she added. Measures announced in the Queen’s Speech, including freeing up more government land for housing, were just “tinkering at the edges”.

A close ally of the Mayor dismissed Mrs Hodge’s criticism and said Mr Johnson had brokered a deal to get a housing development moving on Barking Riverside. The source added: “After years of inaction under Labour, Boris took over the joint venture in 2012. Since then major progress has been made — 1,200 homes are being built.”