July 8th 2024.
In her first speech as Chancellor, Rachel Reeves of the Labour party expressed her commitment to boosting economic growth. One of her key plans is to build 1,500,000 new homes in the next five years. Reeves believes that this will not only provide much-needed housing, but also stimulate the economy by revamping the planning system, reintroducing mandatory housing targets, and accelerating stalled housing projects.
According to Reeves, the current state of the UK economy is dire, with it being £140 billion smaller than it could have been if it had kept up with other OECD countries. This has also resulted in a loss of £58 billion in potential tax revenue, which could have been used to fund vital services like the NHS, schools, and public infrastructure. Reeves puts the blame on past governments who prioritized their own interests over the national interest, leading to a lack of decisive action and progress.
To kickstart the housing project, the new government has already lifted the ban on onshore windfarms in England. Additionally, they are focusing on four major construction projects across the country that have the potential to deliver over 14,000 new homes. These include Liverpool Central Docks, Worcestershire Parkway, Northstowe, and Langley Sutton Coldfield.
The Labour government plans to create a taskforce to accelerate stalled housing sites, with an initial focus on the four areas mentioned above. These sites have faced various challenges in their development, but Reeves is determined to see them through. Liverpool Central Docks, for example, is part of the larger Liverpool Waters development project and has the potential to create 330 new homes, a new ferry terminal, and a green space. Despite facing criticism for its role in UNESCO stripping Liverpool of its World Heritage Site status, the developers are eager to work with the government to realize their vision.
Worcestershire Parkway, centered around a train station, has plans for a whole new town with 10,000 homes, two primary schools, and two neighborhood centers. The developers aim to make it a carbon-neutral town with a population of 24,000 by 2060. However, progress has been slow, with only 1,200 homes currently inhabited. Similarly, Northstowe in Cambridgeshire is facing challenges in meeting its ambitious goal of housing 26,000 people in 10,000 new properties. With the city's high demand for housing, Reeves believes it is essential to accelerate these projects to address the housing crisis.
Langley Sutton Coldfield, a town on the outskirts of Birmingham, is already home to 110,000 people. The proposed development of 5,500 new homes, along with schools, parks, and health facilities, is seen as an unparalleled opportunity. However, it has also sparked controversy, with some residents opposing the project due to potential destruction of trees and hedges and creating a barrier between existing and new areas.
Despite the challenges and criticisms, Reeves remains committed to her plan of building 1.5 million new homes in the next five years. She believes that this will not only address the housing crisis but also provide a much-needed boost to the economy. However, she also acknowledges the need for necessary infrastructure and protections for renters, stating that social homes should not be a by-product of private development. The Labour government aims to take a holistic approach to solve the housing crisis and achieve economic growth.
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