Financial Incentives For Growth
Prosperous cities should be incentivised and empowered to grow. Restricted land supply and transport bottlenecks are making housing unaffordable and transport congested in our most prosperous cities, risking choking off growth and deterring businesses from creating jobs.
Growing cities should be financially incentivised to increase land available for development and build more houses to alleviate constraints on their growth. Land auctions – that enable Local Authorities to keep a portion of the planning gain to reinvest in communities – should be piloted in a few high-demand areas, such as Cambridge, Brighton and Reading.
The Government should combine incentives with a loosening of national restrictions on development, giving Local Authorities greater control over where development takes place. The Government should abolish the national target that 60 percent of all new dwellings are built on brownfield land, which has had the side-effect of restricting development in our most successful cities and pushing up development costs. Local Authorities should be enabled to determine where new houses are built. As transport investment comes under pressure in the tight spending environment, small-scale investments to relieve bottlenecks and reduce congestion must be maintained to prevent successful cities from being held back.
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Key Facts
New housing is not being built where our economy is strongest . More houses have been built in Doncaster and Mansfield than in Cambridge and Brighton.
The population is due to rise to 70m – but Only 10% of GB is officially ‘built up’.
Meeting the national brownfield target implies restricting the growth of our most successful cities – just 11 percent of vacant and derelict land is in London and the South East, where demand for housing is highest, rising to 21 percent when all brownfield is considered.
Congestion carries a huge economic cost to the UK- between £10 billion and £20 billion a year. Costs range from an estimated £1.2bn in Central London to £70million in Cambridgeshire
Bottlenecks on key transport links into buoyant cities can be severe – at peak hours, the load factor on the Cambridge to London line is 150%.










Diamond economies have the potential to deliver over 60,000 new jobs in knowledge based industries by 2015 but will only be able to do so if there is targeted investment in key areas such as transport infrastructure. The issues raised by this manifesto, in particular relating to freedoms and incentives must form part of any new governments policy.
Comment by Cllr Andrew Finney, Chair South East Diamonds for Investment and Growth April 9, 2010 @ 6:56 pm