Flagship Eco-town plan falters in tough climate

Gaby Hinsliff  Observer  26th October 2008

Gordon Brown’s flagship plant to build a string of environmentally friendly ‘eco-towns’ across Britain has been dealt a critical blow, with only two of the 10 sites promised now expected to be built. The model green communities, where residents would be able to do without cars and grow their own food on allotments, were billed as the most imaginative answer to putting roofs over heads in half a century. But the plans are now in jeopardy thanks to a combination of the credit crunch, a collapsing construction industry and fierce local opposition.

Officials at the Department for Communities and Local Government have concluded only ‘one or two’ of the 15 shortlisted projects are genuinely viable, according to a source close to the discussions. The Eco-Towns Challenge Panel, appointed by ministers to ensure the plans were genuinely green, is understood to have reached similar conclusions. Some bidders have already dropped out, while others are said to have been alarmed by the house price crash and the collapse in sales.

The final decision on how many should go forward is yet to be taken by Margaret Beckett, the new housing minister. But she failed to mention either eco-towns or the government’s wider target to build three million new homes by 2020 - which housing experts are also now openly questioning - when she made her first speech to the Home Builders Federation’s annual conference last week.

The news comes as Brown prepares to hail green industries tomorrow as a new source of job creation in Britain. Geoff Hoon, the Transport Secretary, will announce plans to boost the manufacture of electric cars which ministers hope could become more appealing, as they are exempt from congestion charges and also save on petrol. He will announce a £20m grant for businesses to buy electric vans.

You can read the full article at

http://www.guardian.co.uk/environment/2008/oct/26/ecotowns-green-building