The Government’s flagship plan to create a new generation of towns across England risks falling short unless ministers provide strong leadership, upfront investment in infrastructure and a compelling national vision, the House of Lords has warned.
The Built Environment Committee has released its preliminary findings into the new towns programme, ahead of the New Towns Taskforce report expected later this autumn, which is set to recommend the location of the first phase of up to 12 sites.
The committee’s report argues that the scheme cannot be seen as a simple numbers exercise in meeting housing targets. Instead, new towns should be designed to “drive inclusive, sustainable growth, improve life chances, and act as exemplars for contemporary urban design.”
KEY RECOMMENDATIONS
- The appointment of a dedicated minister of sufficient seniority to lead the programme across Whitehall.
- An “infrastructure first” approach, ensuring transport links, schools, health facilities and utilities are in place before the first homes are completed.
- Mandatory design standards to guarantee high-quality construction, backed by local design codes reflecting the character of each area.
- The use of locally led development corporations as the default delivery vehicle, supported by central government oversight and a retained state ownership stake to reassure investors.
- Long-term stewardship models, such as community trusts, to ensure the benefits of core assets flow back to local people after initial investments are repaid.
- A financing model blending patient private capital with government lending and guarantees to fund early infrastructure and maintain affordable housing commitments.
The committee also urged ministers to capture land value more effectively and reinvest proceeds into infrastructure and services, while trialling novel funding tools such as bonds, tax-increment financing and community infrastructure levies.
BIG OPPORTUNITY
Lord Gascoigne (main picture, inset), Chair of the Built Environment Committee, said: “The Government has a major opportunity to deliver high-quality, affordable, and sustainable new towns and expanded settlements at scale.
“However, as it stands, the Government’s programme lacks a clear, engaging vision that provides a rationale for these new towns. It needs to explain to the communities that will be impacted and the wider public what new towns are designed to achieve and why they matter.”
INFRASTRUCTURE FIRST
And he added: “New towns and expanded settlements have the potential to prompt huge public opposition so, before announcing the selected sites, the Government must set out a clear engagement and consult the community in a meaningful way.
“The common approach of only providing physical, commercial, and social infrastructure once houses are built needs to change. An ‘infrastructure first’ approach should be adopted.
“Our committee has taken a high-level and strategic approach to assessing and scrutinising the Government’s new towns programme and we look forward to publishing our full report next month.”
MASSIVE CHALLENGE
The findings highlight the scale of the challenge facing ministers as they prepare to announce sites for the first new towns since the post-war era.
While demand for housing is acute, particularly in London and the South East, peers have warned against concentrating development too narrowly in one region, arguing that the programme should be used to reduce, not entrench, regional inequality.
With memories of past planning battles still fresh, the committee stressed the importance of securing early public trust.
Community engagement, it said, must begin as soon as sites are identified to prevent costly delays and ensure residents have a hand in shaping their future towns.
