Prescott unveils £1.5bn boost for communities

A radical and ambitious £1.5bn plan to rejuvenate communities was outlined by deputy prime minister John Prescott today (Thursday).

New homes in housing hotspots, action to tackle low demand in the North and the Midlands, a faster and fairer planning system, and new money to rebuild some of the poorest neighbourhoods topped the list.

Prescott said: "Make no mistake. We will have to overcome many obstacles in the coming months. The years of neglect and under-investment will not be turned around overnight."

On Monday, Chancellor Gordon Brown announced spending on housing and planning will rise to £4.7bn by 2005-06 - up by £1.5bn on this year's figures.

The cash rise is linked to new targets on balancing housing demand while protecting scarce countryside, achieving higher densities for housing while improving design quality, and speeding up planning appeals and inquiries while maintaining rights of public

In London and the south east, the focus will be on tackling the lack of affordable houses, providing more homes both for key workers and for those in the most need.

In the north and midlands, areas affected by low demand and abandonment will be targeted and there will be greater emphasis on
improving the quality of existing housing stock across all regions.

In planning, the simplified development plan system will see the end of the county structure plan, the compulsory purchase system will be made simpler and business planning zones will be introduced in areas of high unemployment. Extra resources will be made available to local authorities to bring about these changes.

Parliamentary procedures for major infrastructure projects will not go ahead and objectors will continue to have the right to make their
case to an inspector at a public inquiry into plans.