New A Smart Garden City st for the 21 Century

WOLFSON ECONOMICS PRIZE STAGE 1 FULL SUBMISSION

TABLE OF CONTENTS

NON TECHNICAL SUMMARY

1. INTRODUCTION 1

2. CONCEPT 7

3 POPULARITY 17

4. MODEL 21 Disclaimer The information within this report has been prepared solely in response to the Wolfson Economics Prize 2014. No warranty can be given as to the accuracy, reliability, or 5. ECONOMICS 24 suitability for any purpose of the information set out within this report. Accordingly all users who rely on this information do so at their own risk. The author of this report will not be held responsible for any loss, damage, claim or expense whatsoever, incurred directly or 6. MAKING IT HAPPEN 30 indirectly as a result of use of any information presented within the document.

This document has no formal status and has not been prepared with or endorsed by any formal body. All the proposed ideas set out in this document would need to be subject to appropriate due process and decision making together with more detailed feasibility, consultation and environmental assessment processes. Elements of this work are by necessity working assumptions based upon currently available information and forecasts of the future, or are of a subjective nature.

New Abbotsley A Smart Garden City for the 21 st Century

NON TECHNICAL SUMMARY

This submission aims to address the challenge question by presenting an illustrative concept on a specific site. It presents a breadth of evidence, The Vision for New Abbotsley analysis and assessment to draw out and provide a response to the issues, implications and sensitivities. “New Abbotsley will be an exemplary development of the modern age - one which embraces new technology, addresses the needs of current and There could be many possible suitable locations for a new settlement. For future lifestyles and behaves in an environmentally responsive manner. It the purposes of this submission, an area of search has been selected to will be a place for people, helping all to live successful, healthy and the north of within the Bedfordshire and area. fulfilled lifestyles, in an attractive and well designed setting driven by high quality green infrastructure and attractive buildings. It will contain all that This area is experiencing considerable growth pressures and is well people need including physical, social and environmental infrastructure. It located in terms of economic prosperity driven locally within the will be a place of opportunity, fostering innovation and economic sub-region, and more broadly by the London and South East prosperity whilst building social capital. It will set a new benchmark for area. place making at a large scale , providing a modern interpretation of a traditional theme – to create a ‘smart’ Garden City for the 21st Century”. The study area lies outside of green belt boundaries and has direct access both to the strategic highways network and rail network. It is primarily The Defining Principles agricultural in nature, albeit with a range of other land uses, constraints and assets. New Abbotsley will be defined by the following seven key principles:

A bold and imaginative concept has been evolved to create a new It will be distinctive, at the forefront of new thinking in urban and settlement. This has been given the working title of ‘New Abbotsley’, in 1. landscape design creating a place that is both memorable and light of an existing village currently located in the heart of the study area. extraordinary.

The level of the ambition is considerable – the proposal is to create a new 2. It will be ‘ smart’ based upon the full integration of technology from town of real scale and substance – over 85,000 new homes, a possible the outset to help both the place function and it’s residents live in population of upto 200,000 people and the creation of around 120,000 the most effective and efficient manner. new jobs.

New Abbotsley A Smart Garden City for the 21 st Century

NON TECHNICAL SUMMARY

3. It will be a place where green infrastructure and natural assets are Popularity at the forefront. 4. It will be well connected - both into wider strategic transport The proposed concept would bring many benefits: new roads, high networks but also containing efficient internal accessibility and quality public transport networks, new schools, new health centres, new movement. parks and leisure facilities. New jobs and affordable homes would provide real opportunities. 5. It will be socially sustainable where it’s inhabitants can live happy,

healthy and fulfilled lives. There would be a particular focus on active engagement with local 6. It will be environmentally sustainable with full integration of low communities. Each village and existing parish would be able to play an carbon living, effective water management and minimised use of active role in shaping the development proposals– effectively acting as natural resources. the pioneers and master designers for the new city that would grow 7. It will be economically successful where new businesses can locate around them. This would help ensure that not only can their local and flourish. interests be protected, but also that the bold ambition for the City as a whole is realised. New Abbotsley: A Smart Garden City A wider engagement process would be undertaken to capture input from many people across a broad area who would be interested in the idea and the benefits that it may bring. A Community Panel would be established, potentially as an electronic social network (an E-Panel) which would be selected to include a representative sample based upon all local age and social groups.

There would also undoubtedly be local concerns. Whilst the vast majority of existing residents would not need to move, as the existing villages would be safeguarded, some may feel they do not wish to remain. As such a voluntary purchase scheme would be put in place to enable people

New Abbotsley A Smart Garden City for the 21 st Century

NON TECHNICAL SUMMARY

to move, with any properties acquired through this route placed into a The approach suggested in the New Abbotsley case would be for HM local community trust. Government to use its funding power not to fully finance the scheme but to help address headline funding needs, which would remove significant Gaining Local Authority acceptance and support would have to be initial delivery cost and project risk. This would also remove a achieved through a full and open partnership between Central and Local considerable upfront project debt which would otherwise be a burden Government. All decision making would need to be sufficiently locally over the lifetime of the development. This would significantly enhance accountable with both Local Authority and community representation in the risk profile and credit rating of the project as a whole making it a far the proposed delivery vehicle. There would have to be a focus on more attractive and achievable proposition. agreeing a suitable financial package – a Garden City Deal to set the basis for the delivery of infrastructure and local benefits. The ambition would not be delivered without clear and decisive action by Government and a recognition that the creation of a new settlement of Funding & Delivery such a scale is a larger than local issue.

A new Development Corporation would be established to take the proposal forward. This would acquire the necessary land, raise capital, finance and deliver all necessary infrastructure and receive receipts through land disposals.

Initial financial analysis has been undertaken which demonstrates that the scheme is unviable on present day costs and values. This viability is highly dependent on potential changes to key assumptions, in particular changes in property values over time.

In funding terms, private sector investors are highly unlikely to be interested in such a long term property related project, unless it could be substantially de-risked.

New Abbotsley A Smart Garden City for the 21 st Century

1. INTRODUCTION

The Challenge Question This submission attempts to break through the impasse by working with an illustrative concept on a specific site. It presents a breadth of evidence, “How would you deliver a new Garden City which is visionary, analysis and assessment to draw out and provide a response to the economically viable, and popular” issues, implications and sensitivities.

It is abundantly clear that the Country is facing a chronic housing supply The approach to this document problem. A great deal of debate has gone on in relation to what role could large scale new settlements play as part of the solution. Much has It is important to stress that the ideas set out in this submission are been said and done to keep the dialogue alive, but to date there has been purely illustrative and are not in any way meant to indicate that either the much professional comment, with little real substance. What would these site identified, or the illustrative proposals set out for it are what will new places actually be like? How big would they be? What specific happen. They are presented merely to show what could happen, if after a features or principles would underpin them - are the concepts behind the robust process this concept was deemed to be the most sensible, early 20th Century Garden Cities or post-war new towns actually still deliverable and could achieve something of real quality and ambition. sufficiently relevant and transferable in the 21st Century? How can delivery be achieved in light of current commercial, legal and financial Full & effective engagement and collaboration is a fundamental aspect of considerations? the planning system. A wide range of stakeholders would need to be involved in any process that involves considering the possible location of The Wolfson Economics Prize is timely and rightly asks for new ideas and a new large scale settlement. Many issues would need to be considered thinking to not just advance this important debate, but also ground it in and importantly local communities would have much to add to ensure reality through practical illustration. Without having a tangible place or that the best possible decision was taken. concept to illustrate what is being talked about, the debate will continue to be somewhat academic, with no one quite knowing what it all means, The ideas set out in this document have not as yet evolved through such a what the real implications could be, and what might need to be done to process. They can however act as a catalyst to stimulate debate and make it happen. thinking. They benefit from a level of baseline understanding both in terms of considering a real site and its specific context, together with professional knowledge of the planning and delivery process of large

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1. INTRODUCTION

scale strategic growth. It is therefore not just a theoretical or academic  A location within a context of local housing growth pressures which exercise, but a study grounded by evidence and detailed consideration. has resulted in considerable pressure for a range of large scale urban extensions and new settlement proposals. Identifying a possible area of search Introducing the area of search There could be many possible suitable locations for a new settlement. In order to focus down the thinking for this piece of work and find an In light of this context, an area of search has been selected to the north illustrative site to evolve and test, the following key criteria have been of London within the Bedfordshire and Cambridgeshire area. The initial considered: area of search is focussed down to an area of land to the south east of , as illustrated in Figure 1.  The need for an area of sufficient size to accommodate development that could create a place of real substance; The Bedfordshire and Cambridgeshire areas are experiencing  Good accessibility, providing opportunities to link directly into the considerable growth pressures and are well located in terms of strategic highways network and railway system; economic prosperity driven locally within the Cambridge sub-region,  A location which provides the opportunity to alleviate existing and more broadly by the London and South East economic effect. infrastructure pressures and where further considerable investment in transport infrastructure could come forward The area of search also lies outside of green belt boundaries and has intelligently for a broader purpose; direct access both to the strategic highways network and rail network.

 Land which is primarily rural and agricultural hence provides It is primarily agricultural in nature, albeit with a range of other land opportunities for land value uplift, and where in the absence of uses, constraints and assets. such a scheme coming forward, there would be little prospect for

higher value uses; In terms of its regional context, the site lies at a central location along  The potential to attract economic activity due both to its good the A421 / A428 corridor approximately 20 miles to the east of Junction transport links, but also in relation to its proximity to other 13 of the M1 and Milton Keynes. The M11/A14 Junction at Cambridge is prosperous local, sub-regional and wider economic markets; approximately 10 miles to the East.

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1. INTRODUCTION

The A421 stretch to the M1 motorway to the west of the area of search The area of search in more detail has recently been upgraded to dual carriageway, as has the section of the A428 to the east towards the A14 and Cambridge. Traffic heading An initial desk-top analysis has been undertaken to better understand east-west between these sections currently has to join the A1 at the the site in question, it’s current character and potential scope of Black Cat Roundabout, then join the single carriageway A428 through development considerations and constraints. This is only a partial the southern areas of St Neots and along Cambridge Road upto Caxton appraisal and more detailed work would be required should the concept Gibbet. The study area contains the last section that requires upgrading move forward. to enable provision of a fast direct east west link. The land uses within the study area comprise predominantly undulating Figure 1. Area of Search in Context arable farmland with division by hedgerows.

The area is bounded by the and A1 to the west, the A428 to the north, and A1198 to the east. There are also several roads which traverse the site including the B1040 which runs broadly from north to south, and the B1046 which runs from St Neots in the north- west towards Great & in the south east.

The main railway line between London Kings Cross to and runs through the site with a current journey time (from the nearest station at St Neots) of just under an hour into London.

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1. INTRODUCTION

Figure 2: Sit Analysis

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1. INTRODUCTION

The core area of the site includes two civil parishes within South In terms of utilities, the western edge of the site is traversed by several Cambridgeshire (Croxton and Eltisley) and one within overhead power lines which link in to Power Station in the (Abbotsley). Each of these contains small village settlements of 71 north west of the study area. It is understood that there may also be dwellings, 168 dwellings and 186 dwellings respectively (Census 2011). underground pipelines serving the power station and more detailed Each of the villages contain a number of local assets including listed survey work would be required to ascertain whether there are further buildings and reflect the current historic rural character of the setting. utility related considerations. The total population within the core area is approximately 1,000 residents. It is likely that the natural landscape would be home to a range of wildlife and other biodiversity assets. This desk-top appraisal has not Further villages and small towns lie around the fringes of the area of considered these issues in detail and clearly any proposals would search including Little Barford and Tempsford to the west, Everton, require suitable assessment and mitigation. Several Sites of Special , Waresbury, Great & Little Gransden to the south, and Scientific Interest lie to the south of the site although none are within Caxton and Cambourne to the east. the central core area.

Towards the western edge of the study area is the River Great Ouse Administrative & Policy context with its associated flood plain. Within the core of the area the site is relatively unconstrained in terms of flood risk from existing water The study area illustrates the likely complexity of identifying suitable courses, with Abbots Brook running through the centre of the site and locations for large scale development and the local administrative several smaller brooks linking into it. The stretch along the brook and considerations that would need to be addressed. it’s tributaries is designated as Flood Risk Zone 2 which would need to be suitably accommodated within any potential scheme design. As illustrated in Figure 3, the area of search straddles five Local Authority boundaries – Huntingdonshire District Council & South The site also includes pockets of woodland, together with heritage Cambridgeshire District Council (both within Cambridgeshire County assets such as Croxton Historic Park & Gardens, and several scheduled Council), Bedford Borough Council and Central Bedfordshire (both ancient monuments such as moated sites and fishponds. There is some Unitary Authorities). It also straddles two Local Enterprise Partnership leisure activity on site with Abbotsley Golf Course and other outdoor areas (South East Midlands LEP and the Greater Cambridge Greater pursuits. Peterborough Enterprise Partnership).

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1. INTRODUCTION

Figure 3: Local Authority boundaries needs or pushing ambition beyond local political and community acceptability.

The local approach illustrates the challenge with multiple urban extensions effectively being bolted on to existing towns, with many included at this stage and undoubtedly many more required in the future. How far will these be allowed to creep before an alternative solution is considered?

New settlements of the scale of 3-4,000 units have already been implemented (Cambourne and Wixams) and others are coming forward (Northstowe and Waterbeach each up to 8-10,000). The latter in part are due to a legacy of public sector land interests in convenient locations.

This administrative context illustrates the first major challenge to All of these bodies have bold growth and economic development address. Would the relevant Local Authorities entertain the concept set ambitions, and most are reasonably well advanced with their thinking out in this document given the stage they are at and the choices they and preferred strategies to accommodate housing and employment have already made in terms of their preferred locations for strategic growth upto 2031 and beyond. Due to the location of the study area on housing development upto 2031 and beyond? the fringe of each of the administrative areas, it has to date not been included in any of the emerging strategies. More detail on each Local Authority is included at Appendix 1.

Whilst each Local Planning Authority is bringing forward it’s own evidence based preferred strategy in line with the current plan making system, this does not promote thinking beyond addressing minimum

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2. THE CONCEPT

In light of the preceding context and analysis, a concept has been evolved The Defining Principles to create a new settlement within the study area. The scale of the ambition is considerable – to create a new town of real scale and New Abbotsley will be defined by the following seven key principles: substance – over 85,000 new homes, a possible population of upto 200,000 people and the creation of around 120,000 new jobs. The 1. It will be distinctive, at the forefront of new thinking in urban and concept has been given the working title of ‘New Abbotsley’, in light of landscape design creating a place that is both memorable and the existing village currently located in the heart of the study area. extraordinary.

2. It will be ‘ smart’ based upon the full integration of technology The Vision from the outset to help both the place function and it’s residents

live in the most effective and efficient manner. “New Abbotsley will be an exemplary development of the 3. It will be a place where green infrastructure and natural assets modern age - one which embraces new technology, addresses are at the forefront. the needs of current and future lifestyles and behaves in an 4. It will be well connected - both into wider strategic transport environmentally responsive manner. It will be a place for networks but also containing efficient internal accessibility and people, helping all to live successful, healthy and fulfilled movement. lifestyles, in an attractive and well designed setting driven by 5. It will be socially sustainable where it’s inhabitants can live high quality green infrastructure and attractive buildings. It happy, healthy and fulfilled lives. will contain all that people need including physical, social and 6. It will be environmentally sustainable with full integration of low environmental infrastructure. It will be a place of opportunity, carbon living, effective water management and minimised use of fostering innovation and economic prosperity whilst building natural resources. social capital. It will set a new benchmark for place making at 7. It will be economically successful where new businesses can locate and flourish. a large scale , providing a modern interpretation of a traditional theme – to create a ‘smart’ Garden City for the 21st Century”.

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2. THE CONCEPT

1. A Distinctive, Well Designed Place 2. A Smart Garden City

New Abbotsley would be something special, building upon the UK’s proud A new Garden City fit for the modern era must evolve in a way that tradition of creating world-class places, becoming a City that others reflects the nature of current society. It would embrace technology, would look upon with admiration and for inspiration. where this provides a real opportunity to improve not only the efficiency of services and facilities, but also help people to live more fulfilled and It would demonstrate bold and innovative new approaches to more economic lifestyles. architecture, urban and landscape design, drawing from the best talent across the design and place making community. New Abbotsley would be the first of a new generation of modern settlements that can integrate the best of current urban and landscape A strong design ethos would underpin all decision making, with land design thinking with the needs of modern living. Investment in hard disposals and development proposals being subject to stringent design physical infrastructure would be accompanied by intelligent investment in and environmental performance standards. There would be clear design social, human, technological and environmental capital to create a ‘smart’ rules, a structure of design codes and localised governance mechanisms and successful place, unlike any other. to achieve quality in practice. Creating a brand new City would enable the integration of technology It would not be a place dominated by housing estates and dormitory from the outset, building upon the growing significance of smart data in suburbs, but an active and inclusive place providing new residents with all understanding city planning, use and change over time. the facilities and opportunities they would need to flourish. The integration of wireless sensor networks would create a distributed The City would demonstrate individual character & personality that network of intelligent receptors that would measure multiple aspects of responds to the local context, site topography and landscape design. A urban life and help drive more efficient place management. number of defined districts and character areas would provide an opportunity to provide a diversity of housing types within a unified green Well designed ‘smart’ infrastructure can go a long way to support infrastructure framework and approach to the public realm. individual decision making, manage physical resources and help ensure that the new city would be liveable and sustainable in the long term.

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For new residents and communities all these features would be made 3. Green Infrastructure Led available to them where and when they need it. At home the opportunity exists to integrate networked home based information points as part of The core design approach is the creation of a new City in a Garden the direct construction of new homes. Online platforms would also be setting. developed so that residents can engage through their own portable and home based internet enabled devices. In addition access would be The starting point for place design would be the natural environment and provided through community portals and dashboards placed at key existing landscape. Existing natural assets would be retained, protected locations like community meeting points, bus stops, schools and local and linked together through new green corridors and country parks. centres. Everyone would have local access to strategic green infrastructure assets enabling all to live in a city in the landscape. The existence of sensors, real time data and the ability to socially interact and share news and ideas would all come together to create a new type New green networks would incorporate access to high quality leisure and of open-source city network. It would become a city where the local recreation, as well as perform important roles in terms of implementing community can learn, adapt and innovate. sustainable urban drainage systems. The route of the Abbots Brook would perform a particularly important role as a key green corridor linking the The Smart Garden City concept is not about giving data and power just to countryside through into St Neots. It would be interspersed by new lakes policy makers or those in control. Local communities would have equal and leisure facilities to act as a key asset for the new community. access to the same information to help people live in more sustainable and cost effective ways. It would not be a place where technology Considerable investment would occur early in the process to help replaces or dominates traditional life, but one where technology is used establish a strong landscape setting that can mature as the place grows in a positive and rewarding way. and provide a striking setting for bold and imaginative landscape design and responsive architecture. The ‘smart’ theme is cross cutting and would contribute to achieving bold ambition across multiple principles as set out in the following sections.

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2. THE CONCEPT

4. Well Connected 5. Socially Sustainable

The success of the City would rely heavily upon it’s ability to function The City would be created for the people and accommodate a blend of effectively and efficiently. Of key significance would be the provision of a housing tenures to create a mixed and balanced community. New housing strong movement network which recognises and balances the transport would be provided to offer real choice, with considerable amounts set needs of modern life, the commercial requirements of business and the aside for self & custom build, private and affordable rented, as well as need to ensure all have equal access to mobility. traditional owner occupiers.

New Abbotsley would carefully integrate a strategic movement network Close neighbourhoods would be created through the design approach, which blends relatively fast flowing traffic along key primary routes, with people being proud of where they live and engendering a feeling of whilst enabling more responsive local movement networks to emerge ownership and belongingness. within new districts and neighbourhoods. Movement by foot and cycle would be embedded into the place design, with segregated opportunities The smart approach to planning would also provide considerable social for fast and direct access to key centres of activity. benefits. For example social sustainability would be supported through the integration of communications, media and informal networks to help Strategic movement would be facilitated by direct access onto the local foster resident satisfaction and enhance community cohesion. highways network on the A1, A421 and A428. A new rail station would put the City on the map with direct connectivity into London, and the The smart approach can also provide information on local community and opportunity to link into the proposed East West rail link being considered town wide activities, going a step further than currently available to link Oxford to Cambridge, or through a direct connection to the traditional web based services, by drawing in real time information on Cambridgeshire Guided Busway. local bus times, community activities and networks, local weather, etc. It is also more than just access to social information, it is the ability for Smart technology would help residents make better informed decisions in communities to fully interact, communicate and share ideas. City scale terms of transport choices. Real time, tailored and accessible information and localised networks would form a strong basis to foster new patterns would be provided to residents to provide instant information on of working, living, learning, recreation and health. They would help transport conditions, congestion, air quality, local bus locations, car and provide pathways to build social capital and enhance people’s true quality cycle from community pooling networks, etc. of life.

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2. THE CONCEPT

renewable sources whilst recognising the intermittent nature of some The opportunity to interact through modern communications platforms technologies such as wind or solar. Given the scale of development, would also support the digital revolution in public service provision not community energy in terms of biomass or CHP will also be investigated, only with standard administrative functionality but through more possibly linked in to consideration of the potential role of existing energy dynamic interactions such as enabling people to instantly report very generating infrastructure at Barford Power Station. At a strategic level, local issues such as pot holes, graffiti or litter problems. the principles of passive design including active solar opportunities would be factored into the urban design process from the outset. The wider place making approach would ensure that a full range of supporting social infrastructure is in place to support day to day life. New Building at scale would enable the integration of a more sustainable schools, health centres, community centres, open space, retail and leisure supply chain, with use of pre-fabrication and modern methods of would all be provided in a well planned and phased manner. construction to minimise broader environmental impact.

The Garden City approach to community ownership would be integrated Environmental sustainability would be achieved not just by the mere with the proposals through the creation of a town wide trust or similar presence of quality landscaping and an accessible natural environment, which would own and manage a range of community facilities and assets but also by smart knowledge around the consumption of natural on a self sustaining and non-profit basis. resources and human relationships with energy, water & waste. This would help enable people and communities to make better informed 6. Environmentally Sustainable decisions, for example on their own personal energy or water use, helping drive more efficient utility networks together with more economical and New Abbotsley would incorporate innovative modern approaches to sustainable personal consumption habits. energy, water use and waste management. Residents would be able to obtain instant information on their own On energy use, a smart city grid and intelligent metering would enable a energy and water consumption habits, allowing them to instantly city wide energy network that could dynamically respond to living and compare with their local neighbourhoods and wider city trends. This can working behaviours. A range of building and city scale renewable help build greater awareness and help drive more efficient patterns of technologies would be networked into traditional means of energy supply consumption. to help create a smarter approach to optimise generation from

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2. THE CONCEPT

Smart technology would also enable broader sustainability outcomes to In an economic sense, the Smart Garden City approach would be be achieved. As way of illustration, information from the sensor network responsive to new ways of working, with a greater appreciation of people could help accurately pinpoint pollution hotspots or water leaks. It could working from home or in localised shared work hubs. Local networks monitor traffic levels around strategic routes and optimise traffic lights in would enable people to exchange business development ideas and the most dynamic way. Sensors would also monitor city wide drainage contacts, helping build mutually supportive economic relationships and systems and local water tables, linking in to live weather and forecasts to foster innovation. effectively manage surface water drainage and ensure that water flows through the most appropriate sustainable urban drainage mechanisms. The Concept Plan

7. Economically Successful In order to give greater substance to the concept, a Concept Plan draws together the background context, the vision and seven defining principles The City would become a destination of choice for new business into an illustrative concept design. This evolves from three key structuring development and investment. New employment land would be delivered components: for a mix of B1, B2 and B8 uses. This will include a number of strategic locations benefitting from good accessibility and visibility and of sufficient  land use & activity; scale to create modern bespoke commercial districts and high quality  access & movement; and business parks. The whole city concept would act as a key draw to  green infrastructure. businesses, stimulating them want to invest in such a modern, thriving and successful location. The concept plan is not intended to be rigid or definitive. It would allow

flexibility for subsequent masterplans to develop ideas into more detailed New Abbotsley would be designed with efficiency in mind. The transport planning and delivery proposals and three-dimensional form. The process network, the smart utilities, the provision of high quality living and leisure for producing a concept plan would be iterative and informed and shaped will come together to provide a compelling rationale to attract footloose by various stakeholders, including land interests/owners, local businesses, investment. But this will not happen alone. A full and active promotional statutory agencies and the community. campaign would be required to focus in on key economic sectors, and provide the right blend of incentives (such as via a Garden City Enterprise

Zone designation) to create the conditions for success.

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Land Use & Activity Figure 5: New Abbotsley Dwelling & Population

The Land Use breakdown sets out the core basis for where development Dwelling & Population capacity would be anticipated and the broad disposition of land uses and activities Average dwellings per hectare 35 including living, working and retail/leisure Total Dwellings 86,625 Average Household size 2.2 New Abbotsley would cover in the order of 5,500 hectares of land with Total City Population 190,575 the following breakdown of key uses. There would also be numerous pockets of employment space spread Figure 4: Land Use Breakdown across the development offering localised economic opportunities throughout. Land Use % Hectares Residential 45% 2,475 Figure 6: New Abbotsley Employment & Job Creation Strategic Open Space 24% 1,320 Strategic Infrastructure 20% 1,100 Business & Plot Building Total sq Ave sqm Total Employment B2 B8 8% 440 Commercial Density Storeys metres per job Jobs Employment B1 1.5% 83 B2 / B8 40% 1.25 2,200,000 50 44,000 Retail & Town Centres 1.5% 83 B1 40% 2.5 825,000 20 41,250 Total 100% 5,500 Retail/leisure 40% 1.5 495,000 15 33,000 All commercial 3,520,000 118,250 Based upon this land budget and illustrated below this would provide the opportunity for a new City of over 85,000 new homes and a population of almost 200,000 people.

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2. THE CONCEPT

Transport, Movement and Connectivity

As part of developing the movement framework consideration has been given to the key destinations and the options available for sustainable (strategic and local) linkages and modes of transport. Careful consideration has been given to how the existing and proposed linkages within the study area can connect with off site linkages and key destinations to ensure sustainable movement. The movement framework incorporates a potential route for the new A421-A428 link which provides the basis for new connections and strategic corridors through the site.

Figure 7: Transport & Movement Framework

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2. THE CONCEPT

Green Infrastructure Framework

The work in relation to developing the green infrastructure framework has been a key element in driving the design evolution of the development. The function, location and type of green space provision has been designed to integrate and respond positively to the site its current green assets.

Figure 8: Green Infrastructure Framework

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2. THE CONCEPT

Figure 9: The Concept Plan

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3. POPULARITY

The challenge question introduces the issue of popularity, which for any Some concerns could be addressed through the design response, for planning and development project is a key consideration, and one that is example through sensitive scheme layout, providing landscape bunds and particularly significant where large scale greenfield proposals are screening around key edges. concerned. Direct financial compensation to those affected is a further consideration, Responding to Very Local Concerns as a form of incentive to accept change. Whilst it is considered appropriate to make sure that those affected by the proposals do not The scale and significance of these proposals would undoubtedly suffer any adverse financial consequence, it is not considered right or stimulate much interest and debate. The people who currently live in, use ethical to incentivise individuals to alter their views as a result of or benefit from the land and property concerned will rightly be worried payment. To do so could in fact be damaging to local community cohesion about the proposed extent of change. There is no escaping the truth that for example where some residents accept such payments to keep their the change will not be what all the affected people want – they will have views quiet, whilst their neighbours choose to stand firm to their core their own reasons and have made their own choices to live in the area as principles. it is today. They may enjoy the rural setting, their current lifestyle, their direct access to the rural environment and their pleasant views of open It will also need to be made clear that the vast majority of individual countryside. houses and the existing villages of Eltisley, Croxton and Abbotsley would remain in situ. People within these villages would not be at risk of their The response to this valid and anticipated reaction would be through houses being compulsorily purchased. Such villages would be protected showing both understanding and empathy and by doing all that is feasibly through sensitive landscaping and screening to enable them to be possible to address concerns in a genuine manner. Open communication retained and co-exist with their proposed new neighbours. and active engagement would be required from the outset. It would also be important to move quickly through the process of site confirmation Local residents within the area directly affected would be offered suitable and masterplanning to avoid uncertainty around where development and safeguards should they be concerned about the proposals to such an infrastructure would be being implemented. extent that they wish to leave. A package of measures would be put in place to safeguard against people who wish to move but fear that their property values have fallen or they would not be able to sell their property.

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3. POPULARITY

Should any properties need to be compulsorily purchased then these the pioneers and master designers for the new city that will grow around would be at market value with suitable additional compensation. For them. This will help ensure that not only can their local interests be other properties that are directly affected yet do not need to be protected, but also that the wider bold ambition for the City as a whole is compulsorily purchased, a voluntary purchase scheme would be put in realised. place through which eligible property owners can have their property purchased at it’s unblighted open market value – ie the value it would Communicating the benefits have been sold at in the current housing market had the scheme not been announced. Furthermore, additional allowances for all associated legal Communicating the benefits of the scheme would also need to form a key and reasonable costs of moving would be included to ensure that the part of the response. New Abbotsley would not be delivered in the same occupier does not suffer any financial loss. way as the current volume housebuilder approach. A dedicated public sector delivery vehicle would be in place with all the funding it needs to The scheme would be managed fully by the delivery vehicle. It would be ensure that all necessary new infrastructure is provided, often well in straightforward and at no cost to eligible residents. It would also be time- advance of when it may be needed. New roads, high quality public limited to within the first 2 years of the project being confirmed to allow transport networks, new schools, new health centres, new parks and residents some time to reflect on whether they wish to stay or go. Any leisure facilities would all be developed as part of the scheme. New jobs properties that are acquired through this voluntary process would go into and affordable homes would provide real opportunities. a local trust and made available at low cost and affordable rates to establish a local community asset backed vehicle. The Smart Garden City concept also introduces additional benefits over and above those provided by the physical infrastructure. A new smart city Where property is required but does not need to be redeveloped for energy grid, new efficient city services, and access to up to date and some time, sale and rent back terms would be made available to enable comprehensive information would offer existing residents real agricultural, leisure and other eligible occupiers as well as homeowners to opportunities to reduce their cost of living. High speed broadband and transfer the ownership of their property but remain as tenants until it is associated community portal technology would be introduced into all needed for construction. existing homes in the same way as it would to new homes, ensuring that existing residents benefit in just the same way. In addition, each village and existing parish would be able to play an active role in shaping the development proposals– effectively acting as

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Looking beyond the very local area the impact on local infrastructure networks? Setting such a context would enable a fairer debate to be had on the merits, opportunities and When considering the issue of local support it is also important to think suitability of the scheme. more broadly about who actually will the City be for and what are the wider interests, needs and opportunities. The communities who currently Engaging with Local Authorities live in and use the site at present are clearly one important dimension, but they are a relatively small fraction of the number of people who will The respective Local Authorities will require particular attention. There eventually choose to live, work and use the new city. will be issues to be resolved in terms of their statutory duties, as well as their local democratic role. Hence a larger endeavour would be required to work across the area to capture broader input and opinion. Any wider exercise would need to As has been stated earlier in this report, it is unlikely that the Authorities look at the local housing and economic market areas, as well as include a will “need” to accept this proposal, indeed it may well be in conflict with representative cross section of the local population to ensure that a their preferred strategies. Gaining Local Authority acceptance and balanced input can be secured. One way to do so would be to create a support would have to be achieved through a full and open partnership Community Panel, potentially as an electronic social network (an E-Panel) between Central and Local Government. There would be two key which would be selected to include a representative sample based upon dimensions to the relationship -firstly on funding and secondly on all local age and social groups. This could form another engagement governance. network to test the level of local feeling, identify needs and directly engage in the masterplanning and design process. Funding: Garden City Deals

Assessing the broader suitability of such a proposal should also not be A suitable funding settlement would need to be constructed whereby the done in the abstract, but be considered alongside what would be Local Authorities would be rewarded for their agreement to the scheme. anticipated to happen in the absence of this scheme. This would help inform opinion as to what are the alternatives and are they potentially This would be similar in nature to the creation of City Deals and Growth worse or better. For example, if new housing over the next 40 years isn’t Deals, with an emphasis on what Central Government is committing to, located here – where would it be? How many more urban extensions or primarily in terms of infrastructure funding and the creation of a robust smaller new settlements would be required elsewhere? What would be delivery structure that can offer suitable management control and

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certainty. The nature of the deal would need to evolve through direct Additional engagement and influence would be established through the discussions between the key parties, but an initial set of ideas is set out in creation of topic based ‘Challenge Groups’ which would comprise of local the following sections in light of the underlying project economics and the independent experts set up to scrutinise the approach at every stage, and scope of infrastructure works that may be required. ensure the level of ambition and quality is achieved.

Given the scale of growth in terms of new homes and new businesses, the National Democracy Deal would incorporate consideration of future taxation receipts and the balance between local controls over future income streams and Whilst there is a key policy drive to enable bottom up decision making treatment of value created through the endeavour. and a localist approach, it must be acknowledged that the very notion of creating new settlements at such a scale, that may very well cross Governance & Democratic Influence multiple administrative functional area, will be a larger than local issue.

The proposed delivery vehicle structure for New Abbotsley is explained in This is the sort of area that Parliament is elected to consider and the following section. It will be established based upon a key principle implement for the benefit of the Country. By doing so, the democratic that it will be sufficiently locally accountable with both Local Authority process is engaged with representatives of the people making the and community representation on its Board. necessary decisions and initiating action.

Whilst the delivery vehicle itself would be responsible for taking the work forward, it would also require regular high-level engagement and joint working between the respective Council Leaders and Chief Executives as well as a specific working-level focus on key issues.

Joint committees would be set up across key decision making areas to build in local accountability and steer policy making. The vehicle would also be bound by the requirements of Section 11 of the Localism Act 2011 which introduced the duty to cooperate.

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4. THE MODEL

What delivery structure would we need to make New Abbotsley a reality? The delivery vehicle would be responsible for formulating a site wide The answer is heavily influenced by the nature of the proposal itself, the design framework and masterplan which would be accompanied by a key issues that would need to be addressed and the underlying political detailed infrastructure delivery plan to set out the overall level of and economic context. infrastructure provision and commitment. This would be secured through the Garden City Deal which would set out roles, responsibilities and the The fundamentals of a proposed delivery model agreed approach to funding. The approach would not be too dissimilar to that of the preparation of a large scale outline planning application and The model will need to be based upon the creation of a powerful delivery associated S106 agreement with the delivery vehicle (through its vehicle that would be able to get on with the job. It would have to be able ownership of the land) behaving in the role of developer. Any such to acquire the necessary land, raise capital, directly finance and deliver all approach would need to incorporate sufficient flexibility (within sufficient necessary strategic infrastructure and receive receipts through land parameters and safeguards) to enable it to respond to changes over time, disposals. but with sufficient certainty and confidence to protect against poor outcomes. It would effectively act in the form of a ‘master-developer’ responsible for all land assembly and the creation of serviced development parcels which As mentioned in the previous section, it would need to be viewed and are then packaged and passed over to the private sector to undertake the established as a public sector led partnership endeavour, between all physical building construction. tiers of Government, which can then facilitate considerable private sector investment. It would adopt an approach based upon de-risking the scheme for the private sector enabling construction activity to occur at pace and to the A clear financial framework would set the basis of the arrangement – necessary standard. Direct disposals together with build under licence establishing the parameters of the Garden City Deal, who is responsible arrangements and land payments only as units are constructed would for what, and how would value created through the scheme be shared provide an attractive model to subsequent developers and provide the between the key stakeholders. opportunity for a broad range of housing providers and tenures to come forward, including custom build, private rent and owner occupation. Investment appraisal, cost planning and contract management will be particularly key, given that the main area of expenditure will be through provision of infrastructure and services by private sector partners and

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4. THE MODEL

contractors. 3 yearly business plans would need to be agreed and put in As it will still be the relevant Local Authorities who at least in the initial place to set out a clear plan of action, key project activities, progress short to medium term would be responsible for the delivery of supporting milestones, output performance targets and funding balances. services then it will be important to draw them into the overall delivery structure. Opportunities to implement modern service delivery and smart An Accounting Officer would be responsible for ensuring the vehicles technology would be done in such a way to drive economies/efficiencies, financial affairs were carried out in accordance with the requirements of introduce new technology and implement service delivery approaches at Managing Public Money in particular to ensure that arrangements lower cost. This would require sufficient understanding of roles, safeguard public funds and are carried out efficiently, economically and responsibilities, investment and service delivery parameters, set through effectively. the overall initial financial framework.

The model would require a suitable approach to sponsorship and The model’s responsibilities must equally include sustaining and stewardship with Government which could balance legitimate central strengthening the confidence of current and future commercial and oversight to ensure appropriate use of public funds, but not micro- economic investors to attract new jobs and business growth. management of the day to day affairs, letting the vehicle get on with the job. The single most important factor consistently identified in order to guarantee success is getting the right people to work on the project. The It is important to note that a balance would be needed between a fully vehicle would need to be well organised, with visionary and astute ‘commercial’ approach focussing purely on maximising receipts or leadership. It would need a genuine multi-disciplinary professional team minimising costs, as this would risk damaging the credibility of the project working on planning, design, engineering, and social/community and the agreed level of ambition that underpinned agreement to the development – all the key dimensions involved in successful place concept in the first place. Clear objectives for the vehicle would need to making. be established that included a balance between financial performance, appropriate uses of public funds and accountability, with wider objectives New Abbotsley Development Corporation in terms of quality, environmental performance and place based standards. The Development Corporation model would be by far the most suitable, and indeed likely to be the only practical model to achieve the creation of a new town of the scale, significance and ambition as New Abbotsley.

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This need not be seen as a mechanism ‘imposed’ on the local area. As has associated environmental assessment, as well as undertaking the detailed been discussed it would evolve through a voluntary partnership financial planning in advance of the formal inquiry and designation agreement between the respective local stakeholders concerned. process

It would involve a strong sponsor/delivery relationship between Central It would be a company limited by guarantee with a sole member – the Government and the Corporation, albeit with a clear distinction between Secretary of State for whom it would be remitted to undertake the work the roles responsibilities and level of control between the two. and behave as an Executive Non Departmental Public Body.

The Sponsor Department would monitor work to ensure programme It’s main duties and powers would be specified in the Company’s milestones are achieved to budget. The Corporation (with it’s mixed constitution and in letters from the Secretary of State. Board including local representation) would have the autonomy (within a remit from the Department) to focus on delivering the design and It would be funded from the public purse by grants in aid from the development work, the environmental impact processes, the preparation Sponsor Department. As an NDPB the annual accounts would be fully of the masterplan, the land assembly and the effective management of consolidated into the Department accounts. the multi-million pound contracts under which external companies would be undertaking much of the detail on the work. This is a well-tested approach from other major infrastructure projects such as Crossrail, the Olympics, CTRL and HS2.

A Financial Framework and related Garden City Deals with each respective Local Authority would be drawn up and agreed between the sponsor Department and Corporation and the Local Authorities to set out the broad operating framework.

As a fore-runner to the formal establishment of the development Corporation a separate body corporate would need to be established with responsibility for developing proposals including the masterplan and

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5. ECONOMICS

As part of understanding the most suitable delivery model and how New Financial Appraisal Context Abbotsley could be delivered, a high level financial appraisal has been undertaken based upon the information set out in this document. It is important to consider the financial analysis within the context of which it has been undertaken, and the many variable factors that can The approach has involved creating a Microsoft Excel based Discounted heavily influence the outcome. Of particular note, attention is drawn to Cash Flow (DCF) development appraisal, into which all assumed land the following over-arching considerations: value receipts are profiled against assumed development costs on an annual basis over the life of the development  Whilst an illustrative concept design has been evolved, this is purely for graphical representation purposes and therefore this has The result of the DCF appraisal is a Net Present Value (NPV) and an not been detailed or measured for detailed cost planning or Internal Rate of Return (IRR) which take into account the timing of valuation purposes; revenue/capital value and expenditure throughout the development.  The financial appraisal is based upon the Development Corporation

model as previously described, ie land is assembled at Existing Use The NPV provides an indication as to the potential current day value of Value (with compensation), all strategic infrastructure is the project, and therefore expresses viability from a potential commercial constructed, and serviced land is disposed of over time to the developer’s perspective as the level of scheme value discounted to market; today’s prices.  Comparable cost and value figures have been sourced primarily The IRR provides an indication of the rate of return from a potential from publically available evidence, supplemented by an awareness investment given the overall cashflow. This provides a further useful of considerations influencing other schemes. However, there is no reference point and is used by investors to compare alternative truly comparable scheme of this scale or nature and hence most investments based on their yield. Typically expected IRR levels for assumptions can only be professional judgement; property related investments have been in the range of 15-20%, albeit  No direct discussions have been held with relevant bodies to longer term, riskier projects may require higher rates. understand their perspectives or wider considerations;  In light of the long term nature of the project, year on year costs and values will be subject to continual change;

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 There will be many other important changes occurring throughout Figure 10: Baseline Financial Appraisal the lifetime of this project which cannot be predicted from the present day (ie economic cycles, technological changes, and Amount changes to lifestyle) which could all have profound impacts on the Land Sale Returns £5,000m pace of development and its viability. Land Acquisition Costs £262m Infrastructure & Site servicing Costs £4,072m Further details of the assumptions underpinning the analysis together Contingency (@ 20%) £814m with the appraisals are set out in Appendices 2-4. Dev Corp Revenue Costs £345m Balance (before finance) -£95m Baseline Scenario Finance costs -£1,650m Balance (after finance) -£1,745m The baseline scenario currently provides an assessment of the Net Present Value -£1,356m NPV/residual land value of the entire site adopting values and costs in IRR -0.5% today’s prices. Sensitivity Analysis As illustrated in Figure 10, the baseline analysis indicates that the baseline scenario generates a positive NPV of circa -£1,356 million and a project Project viability is highly sensitive to underlying project assumptions. This IRR of -0.5%, which indicates that the scheme is unviable on this basis. is particularly acute in light of the sheer scale and timescale of the project, Sensitivity analysis has therefore been undertaken to assess potential outcomes under alternative key scenarios. These have considered two key dimensions of fundamental significance, namely changes in values and changes in costs. A third dimension is also of particular significance – the pace of development and trajectory of land disposals, but for the purposes of this document changes to the baseline position have not been tested at this stage.

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Improvements in residential sales values For the purposes of these sensitivity tests, 4 alternative annual levels of The property market is inherently difficult to predict, and is subject to project contingency have been tested: 10%, 20% (the baseline), 30% and considerable market swings in response to general economic conditions. 40%. Having said that, the long term trend has demonstrated a strong upward curve which one would assume to continue going forward. Property The table below reveals the outcomes of the sensitivity tests. These are professionals are rightly reluctant to provide detailed forecasts although presented as a matrix with alternative cost and value assumptions to figures of 3-7% per year value growth over the short term have been illustrate the potential range of outcomes both for the NPV and IRR given quoted by surveying firms such as Knight Frank. Property price the range of alternative assumptions. movements do not directly result in equal changes in land values and would be likely to drive a disproportionate beneficial impact on possible Figure 11: Sensitivity Results land returns (even after accounting for cost inflation). Value 0% 2.5% 5% For the purposes of the sensitivity tests, 3 alternative annual value Costs growth assumptions have been tested: 0% (baseline), 2.5%, and 5% 40% -£2.4bn £2.2bn £11.8bn growth per year (applied to residential land disposal values only, indexed -5.3% 7.9% 15% from the present day and assumed net of cost inflation). 30% -£1.9bn £2.8bn £12.3bn -2.6% 8.8% 15.8% Enabling infrastructure costs 20% -£1.4bn £3.3bn £12.8bn -0.5% 9.7% 16.7% The project requires substantial enabling infrastructure, the full and real 10% -£837m £3.8bn £13.3bn cost of which may only become clear over time. The baseline assumptions 1.4% 10.8% 17.6% provide a starting point and an additional contingency amount has been allowed for to reflect any abnormals and optimism bias. Rather than The sensitivity analysis starts to illustrate that the commercial attempt to review each cost line separately, altering this level of attractiveness of the project will primarily depend upon the attitude to contingency provides a reasonable proxy to test changes in possible risk and optimism over future value change. infrastructure costs.

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In light of likely value growth, together with a more cautious approach to many are considered too risky. The bulk of institutional investment occurs cost planning, it is considered that the 2.5% growth and 40% contingency after the construction phase and when infrastructure becomes scenario provides a reasonable commercial position. This generates a operational and there is a more stable, predictable income like profile of healthy NPV but an IRR lower than would be attractive to private returns. For example utilities can provide reliable revenue streams investors. potentially alongside investment. It is far more difficult to attract funding for assets that are being constructed from scratch and there is an What the financial analysis reveals element of uncertainty over the timing or reliability of future income streams. Additional considerations like the introduction of capital The purpose of the financial analysis is to inform the approach to the requirements on banks coming out of Basel III with higher liquidity most appropriate financial structure that could be adopted to make the requirements will also influence a preference away from long term project a reality. financing.

The challenge question has indicated a need to come forward with an Infrastructure is only one of several investment opportunities available to approach which does not rely on a single penny of public funding. investors. Construction is particularly vulnerable to risk which can make it a more uncertain proposition when compared to alternative investment Based upon the numbers presented here, and the commercial approach options. Action is therefore needed to minimise the risks as far as is of the investment sector this proposition is not considered to be realistic. possible. The main key anticipated commercial risks, and their mitigation is set out in Figure 12 below. In essence the creation of a new settlement is a long term property investment with an initial emphasis on significant upfront infrastructure outlays. The return on capital is dependent on the strength of future property markets spanning several decades. As such investors are highly unlikely to be interested unless the project is substantially de-risked and the terms made far more attractive.

This is typical of the investment market in such infrastructure related projects. While some infrastructure assets are attractive to investors,

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Figure 12: Headline risk & mitigation network. It is further suggested that Government also commits to funding the land assembly process again as the outlay is upfront in the Risk Mitigation process and of particular significance to scheme cashflow. It is proposed Political and The Development Corporation would be that these interventions are not necessarily considered as investment but regulatory risk. established through an agreed partnership basis as direct capital spend to enable the scheme to come forward. and would have strong power to get things done. This outlay (at circa £450m) may sound unpalatable given the state of the Pricing & budgetary The financial framework would provide a strong public finances, but would need to be considered carefully in BCR terms risk. funding basis to delivery, with risk fully priced in. against what it would be enabling – 86,000 new homes, 3m sqm of Procurement risk. A strong commercial approach would be employment floorspace and circa £20-30bn of additional private adopted to manage procurement processes and investment in construction activity. ensure VfM With this approach in place, the scheme becomes a far more Suggested Approach commercially attractive proposition with an IRR passing the benchmark 15%. This would put the scheme in a suitable financial context to enable The approach suggested in the New Abbotsley case would be for HM the Government to then either act as investor itself – funding the Government to use its funding power not to fully finance the scheme but Corporation on commercial terms via long term loans (and therefore to help address key headline funding needs, which would both remove benefiting from it’s future performance for public good), or it could seek significant initial delivery cost and project risk, whilst also removing a to bring in a private sector investor to fund the remaining infrastructure considerable upfront project debt which would otherwise be a burden components through a form of mezzanine credit enhancement. over the lifetime of the development. This would significantly enhance the risk profile and credit rating of the project as a whole.

In light of the nature of the scheme it is considered that as part of the underpinning Financial Framework HM Government would need to capital fund the provision of the A421-A428 link – as it will in any event be performing a national role as part of the country’s strategic highways

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Figure 13: Sensitivity Results: With Government funding it uses public funding to secure an unfair commercial advantage for and is, therefore anti-competitive. If the Government was to provide low-cost Value 0% 2.5% 5% funding to the Corporation on terms that were not available in the private Costs sector, and subsidised the development costs to enable an increased 40% -£1,058m £3.6bn £13.1bn commercial profit out of the scheme, then this could be considered to be -3.5% 15.4% 28.9% unfair State Aid. 30% -£587m £4.0bn £13.6bn 0.2% 17.9% 31.7% The risk of state aid issues could potentially be mitigated through an 20% -£115m £4.5bn £14.0bn appropriate structure to the procurement of works and subsequent terms 3.6% 20.8% 34.7% of asset disposals. On the first point, the Commission typically considers 10% £357m £5.0bn £14.5bn that no State aid is involved where a contractor has been selected 7.1% 24.1% 38% pursuant to a competitive tender procedure and the price is therefore considered to be a market price. On the second point land disposal Should a private sector investment partner be brought in, the Funding would need to occur on a transparent and market value basis. Framework could be structured in such a way that a future share of land receipts, overage and ownership of residual assets could allow for future Should State aid issues apply, the terms of the project funding would return to HM Treasury to recompense it for the initial public sector need to satisfy the Market Economy Investor Principle. The Government financial outlay. This could be set up on the basis of a minority share of would have to demonstrate that it was acting in the same manner as a project funding, placing itself lower down the ranking of creditors in case prudent private investor. It would therefore need to be satisfied that the of loss. This would help increase the rating of the remaining share of the scheme represented an acceptable investment risk, that the returns on needed funding, as in any potential loss scenario; the Government that financial investment would be acceptable to the lending market and tranche would be impacted first thus credit enhancing the remaining that the rates of interest and other terms of the Funding Agreement were share. As a contingent liability this approach would only affect the on commercial terms. This has been the basis of recent investment Governments fiscal position in extreme circumstances. programmes such as Get Britain Building and the Local Infrastructure Fund through which direct investment loan facilities are being offered The Government would have to ensure that the proposed approach to directly to private sector scheme developers. funding does not contravene European State Aid rules, to the extent that

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6. MAKING IT HAPPEN

Given the pressing need to boost housing supply and the potential lead in time before any new Garden City settlements can start producing new housing starts, it is vital that action is initiated as soon as possible.

The following 5 key actions are suggested:

1. Consider in more detail the benefit cost ratio of taking forward new Garden Cities, building upon the evidence submitted via this competition together with formal market testing with potential long term investors, alongside full consideration of the scope for HM Government financial support; 2. Consider in more detail the legal context including the need for modifications to New Towns powers and the requirements of due process under European legislation; 3. Establish a formal process to build cross party consensus on the issue and bring forward a Written Ministerial Statement to clarify the Government position and ambition; 4. Set up an impartial arms length organisation to undertake a review of the locational options together with suitable consultation and environmental assessment, and come forward with recommendations for consideration; 5. Subject to the recommendations being supported and defining one or more sites; set up individual bodies to advance site specific masterplans and business cases for subsequent Inquiry and potential designation.

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Date: April2014 Project: RVW01.1 Contact: [email protected]