New Towns

Florence Eshalomi Excerpts

Thursday 15th January 2026 Commons Chamber

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I congratulate my hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray) on securing this debate, and I thank her for outlining her experience, and for her passion in representing a new town. When we talk about the next generation of new towns, it is important to listen to the experiences from new towns like Cumbernauld. I am pleased to see many other Members who represent new towns; I am sure that they will give us a flavour of what they have seen in their area. We must think about the challenges that those towns have faced, and what Members for those areas may say in this House in 70 years’ time, when we have all left.

The Town and Country Planning Association’s new towns network highlighted some of the common features of new towns in a 2021 report. It highlighted both the positive legacies, to do with innovation, accessibility and social housing, and some of the challenges to do with town centre renewal, and the need for whole estate regeneration, not rushed, poor-quality housing. If we want new towns to last, it is critical that the Government listen to the experiences of new towns today, so that we get the place-making element of the new towns programme right, and so that current and future new towns get the support that they need from Government, in recognition of the unique challenges that each location faces.

When the Government announced the new towns, they described the original new towns programme as

“the most ambitious town-building effort ever undertaken in the UK”,

saying that it

“transformed the lives of millions by providing affordable and well-designed homes”

in well-planned and beautiful surroundings.

The new towns taskforce made 44 recommendations; I am sure that hon. Members have read them all. They include making sure that new towns are built at a density sufficient to enable residents to walk to local amenities, and ensuring that they support public transport, unlock better social infrastructure, and create active and liveable neighbourhoods with clear minimum density thresholds. New towns should also provide a diverse range of high-quality housing, as Members have highlighted. This should include a minimum target of 40% affordable housing, with at least half of that being available for social rent. New towns should support thriving communities by ensuring access to schools; to cultural, sporting and healthcare facilities; and to other social infrastructure that meets new residents’ needs from the outset.

Another recommendation was that the starting point for the delivery of all new towns should be the development corporation model. The Government must also be clear on the interactions between new towns and local housing need targets, which the hon. Member for North Bedfordshire (Richard Fuller) highlighted. The taskforce found through its place investigations that there was strong support for homes delivered through new towns to count towards local housing targets.

It was good to see the Government and the Secretary of State welcome the taskforce’s recommendations. The Government have announced the commencement of a strategic environment assessment to understand the environmental implications of new towns. This assessment is intended to support the final decisions on location.

I welcome the Minister to the House to discuss new towns for the second time this week, following our session of the Housing, Communities and Local Government Committee on Tuesday. I do not want to completely rehash that session, but I do want to follow up on a few things that were said, and I hope the Minister can give some answers today. In response to the taskforce report, the Government agreed that development corporations should be the primary delivery body for new towns. That is welcome, but on Tuesday the Minister acknowledged in answer to questions from my hon. Friend the Member for Milton Keynes North (Chris Curtis) that development corporations can take a long time to set up, and that may come after rounds of consultation. How soon after making a final decision on location will the Government seek to set up the first development corporations? I know we are all keen to see spades in the ground on at least three sites by the end of this Parliament. How many does the Minister expect will have development corporations in place?

Secondly, our Committee recommended, in our report last year on land value capture, that the Government should enable greater use of tax increment financing instruments to fund infrastructure in new towns. That model allows local authorities to borrow money against the anticipated tax receipts resulting from the future infrastructure. TfL used that system to finance London Underground’s Northern line extension to Battersea and Nine Elms—I declare an interest, in that the lovely new Nine Elms station is in my constituency. Our committee heard that this method of financing could be used more widely across England. Are the Government considering that, and if not, why not?

The Minister told our Committee that funding for new towns will come from the Department’s existing programmes, including the £39 billion social and affordable homes programme. That pot of funding is welcome, and it is the biggest investment we have seen in the affordable homes programme; it shows the Government’s commitment to building those much-needed new homes. Bidding for the social and affordable homes programme opens next month, but answers to our Committee indicate that we will see significant building on the vast majority of the sites in only the early 2030s. That could mean that it is years before those homes come down the line; that will do little to address the acute homelessness crisis facing 300,000 people in the UK today. What discussions has the Minister had with Homes England on prioritising funding from that pot? Will any new weighting be given to social housing in the shorter term?

The Secretary of State told our Committee in November that he was committed to the new towns delivering a minimum 40% affordable housing, but the Minister told us on Tuesday that this was “an aspiration” and that

“we cannot discount viability entirely”.

Affordable housing was at the centre of the taskforce’s report, at the centre of the recommendations around place-making, and part of the Government’s gold standard for new towns. Can the Minister confirm that, as the Secretary of State highlighted to us in November, he is committed to the recommendation that new towns should deliver a minimum of 40% affordable housing, at least half of which should be for social rent?

Finally, stakeholders, and Members this afternoon, have stressed the importance of local communities being involved in new towns from the beginning. Dr Victoria Hills, chief executive of the Royal Town Planning Institute, said:

“The first wave of new towns showed what can be achieved when government and planners work at scale, but they also highlight the importance of getting design, infrastructure, and community voice right from the very start. Public support for new towns will depend on learning those lessons and making sure they reflect the aspirations of the people who will live and work in them.”

I know that the Minister is committed to ensuring that the public are brought along, and to the important principles of community engagement and community leadership. It is important that the Government continue to listen, to provide opportunities for local communities to shape the infrastructure and the vision, and to make sure that everyone is committed to the end goal of new towns being built.

I hope that the Minister agrees with us, and shares our ambition that the new towns should offer the opportunity for economic growth, support communities and build the new homes that we desperately need. We cannot keep saying that we are in a housing crisis and not doing anything about it. They should secure those national objectives and make sure that we get good, honest infrastructure at scale and pace. I thank my hon. Friend the Member for Cumbernauld and Kirkintilloch for securing the debate, and I know that there will be many more discussions to come.

[Several hon. Members rose—]