Government backs eco-town investment plans

A Government report has backed the proposals for the billions of pounds of investment the Co-operative Group aims to make in Leicestershire as part of its eco-town plans.

A study, commissioned by the Department for Communities and Local Government (CLG), was published yesterday.

The report says the Co-op's business plan for the development will deliver investment of up to £3.13 billion in housing, community facilities, schools and transport infrastructure. The Co-op wants to build the 15,000-home eco-town Pennbury on a 4,000-acre site between Stoughton and Great Glen.

The CLG's report, undertaken by consultants PricewaterhouseCoopers, concludes the Co-op has created a sound base case for delivering the eco-town and related infrastructure, including transport.

It confirmed that the proposals could generate sufficient value to fund the scheme "without drawing on public subsidy".

Ruairidh Jackson, head of planning and property strategy for the Co-operative Group, said: "This is the type of investment that we think Leicester and the city region needs to meet its current challenges, to create a sustainable legacy and to go from strength to strength."

Kevin Feltham, chairman of Campaign Against Stoughton Co-op Eco-Town (Cascet) said there were issues left unanswered. He said: "We have to make sure they are looking at investment which is optional as well as the things that have been required.

"This has not addressed issues such as the moving of the airport and the infrastructure costs in London Road.

"So, until a thorough validation has been carried out on the Co-op's financial assumptions, Cascet will remain of the view that the plans for Pennbury are unworkable."