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Labour warned one key failure could undermine their £48billion new towns plan | Politics | News

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Last updated: November 2, 2025 7:17 am
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Published: November 2, 2025
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Labour is being urged to get shops, transport and other infrastructure sorted before breaking ground on its first new town. The Government has pledged to build at least three new towns this parliament, with 12 sites identified for development in total which could cost up to £48 billion. 

UK infrastructure policy adviser Mark Coates and a new report by a House of Lords committee are both calling an infrastructure-first approach to the plans. Mr Coates, who helped to deliver the Elizabeth Line and transport for the 2012 Olympics, said Labour risks creating “postcodes, not places” with the proposals. He told the Express most of the areas earmarked for development lack clear plans for rail transport links, warning this could undermine the project and also Ed Miliband’s net-zero ambitions before a single brick is laid.

Mr Coates, who is vice president of the Infrastructure Policy Advancement think tank, said: “You can end up building these new properties [but] they are going to be isolated and out of the way, or they’re going to have some very large commute to relevant work or relevant stations.”

He added: “You need to get that level of open transport before you hand over the keys, really push that connection.

“It’s no longer a nice to have. It’s a difference between a thriving place and an expensive postcode.”

He added if connections to the new towns aren’t up to standard, people could be put off purchasing the homes, leading to empty properties and wasted money. 

Each new town is set to have at least 10,000 new homes and, including infrastructure and other amenities, is expected to cost between £3.5 and £4 billion, according to research from consultancy firm WPI Strategy.

An independent report recommended 12 locations across England as potential new towns.

Sites at Tempsford, Bedfordshire, Crews Hill, Enfield, and Leeds South Bank have been identified as the most promising by the Government.

Mr Coates, who described the project as “extremely ambitious”, said Tempsford is the only proposed new town with a fully pre-planned rail station.

The proposals make up part of Labour’s pledge to build 1.5 million homes in England by 2029, despite warnings from some industry experts and councils that it is “impossible”.

A report by the House of Lords Built Environment Committee said strong and central Government leadership is required to ensure the new towns plans succeed. 

It warned funding is one of the biggest challenges facing the programme, while also echoing Mr Coates’ call for an “infrastructure first” approach. 

Tory peer Lord Gascoigne, who is chair of the committee, welcomed the plans but said infrastructure is needed to “unlock” the sites and drive investment.

He told the Express: “It isn’t just transport and utilities, it’s also social infrastructure as well, such as shops and schools.

“There does need to be a robust plan that really sees it through.”

Lord Gascoigne added: ”If you want to say to people ‘an entirely new town is needed’, you need to also ensure the people that move there have a sense that this is also a strong and successful community.

“Therefore, you are increasing not just the desire to live there, but also the sense that there’s greater confidence and more and more people would want to move there.”

In response, a Ministry of Housing, Communities and Local Government spokesperson said: “The Committee welcomed the New Towns Taskforce’s report and we have been clear that new towns will be built with infrastructure like schools and shops that people need.

 “The Housing Minister and Secretary of State are driving forward this landmark project to restore the dream of homeownership across the country.”

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