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George Osborne unveils UK's 'first garden city for 100 years' George Osborne unveils UK's 'first garden city for 100 years'
(about 1 hour later)
George Osborne has announced the creation of what the government is describing as the UK's first garden city for almost 100 years, by the Thames Estuary at Ebbsfleet. George Osborne has announced the creation of what the government is describing as Britain's first garden city for almost 100 years, by the Thames Estuary at Ebbsfleet.
Speaking on the BBC's Andrew Marr show on Sunday, the chancellor said that initially 15,000 homes would be built on the site, which has been chosen partly because a high-speed rail connection puts it within 19 minutes of central London.Speaking on the BBC's Andrew Marr show on Sunday, the chancellor said that initially 15,000 homes would be built on the site, which has been chosen partly because a high-speed rail connection puts it within 19 minutes of central London.
Osborne also said he would use his budget on Wednesday to extend one of the government's two Help to Buy schemes. He will pledge £6bn to extend the equity loan scheme to 2020, funding the construction of a further 120,000 homes.Osborne also said he would use his budget on Wednesday to extend one of the government's two Help to Buy schemes. He will pledge £6bn to extend the equity loan scheme to 2020, funding the construction of a further 120,000 homes.
The two initiatives would mean "more homes, more aspiration for families [and] more economic security and economic resilience", Osborne said.The two initiatives would mean "more homes, more aspiration for families [and] more economic security and economic resilience", Osborne said.
Ebbsfleet has been identified as a site for new housing development for at least a decade, but progress has been slow and so far only around 150 homes have been built. Ebbsfleet has been identified as a site for new housing development for at least a decade, but progress has been slow and so far only around 150 homes have been built.
Osborne said he would accelerate the process by setting up an urban development corporation to get the project off the ground, with a mandate to build 15,000 homes providing accommodation for between 23,000 and 34,000 residents. Osborne said he would accelerate the process by setting up an urban development corporation to get the project off the ground, with a mandate to build 15,000 homes providing accommodation for between 23,000 and 34,000 residents.
Osborne said it would be a "proper garden city", the first since Welwyn Garden City was founded in 1920.Osborne said it would be a "proper garden city", the first since Welwyn Garden City was founded in 1920.
Asked why Ebbsfleet had been chosen as the location, Osborne told Marr: "[In] Ebbsfleet there is the land available, there is fantastic infrastructure, with a high-speed line. It's on the river, it's in the south-east of England, where a lot of the housing pressure has been, and, crucially, we've got local communities and local MPs who support the idea."Asked why Ebbsfleet had been chosen as the location, Osborne told Marr: "[In] Ebbsfleet there is the land available, there is fantastic infrastructure, with a high-speed line. It's on the river, it's in the south-east of England, where a lot of the housing pressure has been, and, crucially, we've got local communities and local MPs who support the idea."
Last month, Centre for London, an independent thinkthank, published a review lead by the Labour peer Lord Adonis calling for a new town to be built at Ebbsfleet. Last month, Centre for London, an independent thinkthank, published a review led by the Labour peer Andrew Adonis calling for a new town to be built at Ebbsfleet.
Osborne also told Marr that the Help to Buy equity loan scheme, which was due to come to an end in 2016, will be extended in the budget until 2020.Osborne also told Marr that the Help to Buy equity loan scheme, which was due to come to an end in 2016, will be extended in the budget until 2020.
This scheme, which involves the government lending prospective buyers up to 20% of the cost of a home so that the buyer only needs a 5% deposit, covers only new-build homes, which has made it less controversial than the Help to Buy mortage guarantee programme that can apply to any property worth up to £600,000. This scheme, which involves the government lending prospective buyers up to 20% of the cost of a home so that the buyer only needs a 5% deposit, covers only new-build homes, which has made it less controversial than the Help to Buy mortgage guarantee programme that can apply to any property worth up to £600,000.
The equity loan scheme has already helped to fund the purchase of 25,000 homes. According to the Treasury, extending it from 2016 to 2020 will help another 120,000 people buy homes.The equity loan scheme has already helped to fund the purchase of 25,000 homes. According to the Treasury, extending it from 2016 to 2020 will help another 120,000 people buy homes.
In the interview, Osborne said he would use his budget to argue that the coalition's economic plans were working but that the job was "very far from done". He said he would use his statement to announce the level of the cap he intends to impose on overall welfare spending. In the interview, Osborne said he would use his budget to argue that the coalition's economic plans were working but that the job was "very far from done". He said he would use his statement to announce the level of the cap he intends to impose on overall welfare spending.
He also hit back at Lord Lawson, the Conservative former chancellor, who has complained that the coalition's focus on the raising the basic income tax allowance has come at the expense of "middling professionals", increasing numbers of whom are among the 15% of workers paying the 40p upper rate of tax. He also hit back at Nigel Lawson, the Conservative former chancellor, who has complained that the coalition's focus on the raising the basic income tax allowance has come at the expense of "middling professionals", increasing numbers of whom are among the 15% of workers paying the 40p upper rate of tax.
Osborne, who is expected to announce a further increase in the personal allowance (the amount of earning on which no income tax is levied) to at least £10,500, said there had been a "misconception" in this debate and that lifting the basic rate allowance helped all taxpayers, apart from the very rich.Osborne, who is expected to announce a further increase in the personal allowance (the amount of earning on which no income tax is levied) to at least £10,500, said there had been a "misconception" in this debate and that lifting the basic rate allowance helped all taxpayers, apart from the very rich.
"When you look at this debate, you would get the impression that somehow increasing the personal allowance only helps people on low incomes," he said."When you look at this debate, you would get the impression that somehow increasing the personal allowance only helps people on low incomes," he said.
In fact, it helped people earning £20,000 and those on £50,000, he said. The only workers who do not benefit were those earning more than £100,000,.In fact, it helped people earning £20,000 and those on £50,000, he said. The only workers who do not benefit were those earning more than £100,000,.
Ed Balls, the shadow chancellor, told BBC Radio 5 Live's Pienaar's Politics that extending Help to Buy was "a damp squib" and that Osborne should have done more to boost house building over the past three years. Ed Balls, the shadow chancellor, told BBC Radio 5 Live's Pienaar's Politics that extending Help to Buy was "a damp squib" and that Osborne should have done more to boost house building over the past three years.