Report questions viability of flagship 'ecotown'

By Jim Pickard, Political Correspondent
Published: February 26 2009 02:00

Campaigners against Gordon Brown's proposed "ecotowns" said yesterday the plans were doomed after an independent report suggested a flagship project was no longer financially viable, writes Jim Pickard.
Six local councils hired CB Richard Ellis, one of the world's biggest property agents, to assess the viability of the Middle Quinton scheme, near Stratford-upon-Avon. With property prices in freefall, the agent reported, the £1.63bn scheme would make a loss of nearly £400m, even before obligations to pay for roads and other infrastructure.
The Campaign for the Protection of Rural England said the report sounded the death knell for the entire programme of up to 10 green communities.
"The report demonstrates clearly that building an ecotown here is not viable without a huge level of public subsidy," said Kate Gordon, a senior planner for the group. "A better alternative would be to use public funds to pay for affordable homes within existing settlements alongside measures to 'green' existing property and bring back into use empty homes."
St Modwen, the company behind the scheme, disputed the report and said the project was still viable.
The CBI will urge the government today to impose temporary changes on planning laws. The employers' group wants an extension to the three-year life of planning permits to avoid even longer delays as companies are forced back to the drawing board.
Copyright The Financial Times Limited 2009