Funding for the eco-towns programme has been cut by 50 per cent, housing minister Grant Shapps has told councils
The previous government in February pledged funding of £60 million to build 10,000 green homes in four already approved eco-towns by 2016.
An additional £10 million was put forward for a second wave of the homes in March to see if it was possible to get proposals to meet Planning Policy Statements (PPS) standards and put them through planning.
However, Shapps has informed councils that payments will be cut by 50 per cent and that his priority is to ensure that plans are well supported locally and will achieve genuine improvements in sustainability.
A Communities and Local Government spokesperson said: ‘Housing minister Grant Shapps wrote to council Leaders engaged in the eco-towns programme on 2 July.
‘Eco-town funding awards for 2010/11 will be reduced by 50 per cent and before releasing funding the minister has asked councils to provide details about their programmes - an update on their plans and how they will engage the community on the development.
‘While there has been a 50 per cent cut in Eco-town funding awards for 2010/11, this still provides a good level of start up funding for these projects in the current circumstances.’