Funding issues throw major homes plan into doubt

A major housing development has been thrown into doubt after the government said it would no longer fund a crucial link road.

About 7,500 homes have been planned on fields east of Colchester, in Essex, as part of a new garden community on the Tendring border.

However, the government said an "escalation of costs" meant it could no longer afford to construct a road linking the A120 and A133.

Housing minister, Rushanara Ali, told the House of Commons a new town could still be built without the road, but it would consist of 2,500 fewer properties.

The plans have not yet been approved by Tendring District Council and Colchester City Council. They told the BBC they were waiting for "a commitment to full funding of the link road" before they would sign the blueprints off.

As part of the garden community, it was hoped schools, a hotel, doctors surgery and sports facilities would be built - as well as a link road to connect the site.

In 2020, the government agreed to fund the new road at a cost of £99.9m.

Work started in 2024 but despite this, the government said spiralling costs meant it could no longer afford to finish it.

Ali said: "Over the past few years, infrastructure projects across the country have been affected by a number of unexpected factors, such as the pandemic, rising inflation, the shortage of skilled labour and other external events.

"Due to the escalation of the costs with the Tendring project, it is no longer possible to construct the entire link road with the funding available."

The MP's claim that 5,000 homes could still be built without the new road has been disputed by all three local authorities with a stake in the project.

Essex, Tendring and Colchester councils all said the road was imperative to any development.

Harwich and North Essex MP, Sir Bernard Jenkin, added: "If the road is not completed before the main housebuilding starts, the gridlock will become standstill for hours on end and the new homes unsaleable, so the development will stall.

Sir Bernard, a Conservative, claimed the new town would not be "economically viable" without the government stumping up more cash.

It is understood about 7,000 homes would need to be built for both Colchester City Council and Tendring District Council to meet their targets.

Ali stressed the government was keen to find an alternative source of funding to finish the link road and ensure the houses were constructed.

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