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Friday 9 July 2010

Coalition halves eco-town funding

The coalition government has halved funding for eco-town projects, the Department for Communities and Local Government has confirmed.

In a letter sent last week to local authorities working on plans for eco-town developments, housing minister Grant Shapps told council leaders he was reducing funding for 2010/11 from a total of £70 million to £35 million.

Earlier this year the previous Labour government pledged £60 million to fund homes and infrastructure projects on the first four confirmed eco-town sites in Hampshire, Cornwall, Norfolk and Oxfordshire. A further £10 million was pledged for 11 projects in the second wave of the eco-towns programme. Those amounts have now been reduced to £30 million and £5 million respectively.

A spokesman for the DCLG said: "While there has been a 50 per cent cut in eco-town funding awards for 2010/2011, this still provides a good level of start-up funding for these projects in the current circumstances."

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