The credit crunch and the downturn in the housing market have been blamed for the decision to delay the start-up of Northstowe, the proposed new town in Cambridgeshire which is a test bed for the Government's eco-town initiative.
Originally housing construction at the site of the proposed new town, five miles north west of Cambridge, was scheduled to start during the back end of next year.
Now the partners in the venture have announced that that stage won't be reached for at least a further 12 months, pushing the scheme's start nearly into the next decade.
All the Northstowe partners - English Partnerships, developer Gallagher, South Cambridgeshire District Council, Cambridgeshire County Council, and Cambridgeshire Horizons - have agreed to the new target and to co-operate fully to ensure plans for Northstowe can continue to make progress despite the current economic climate.
Joint promoters Gallagher and English Partnerships are currently fine-tuning and revising the proposals in the light of council comments on the Northstowe planning application submitted in May.
To aid the delivery of the new town, Cambridgeshire Horizons has asked the Government for further investment in the new settlement's infrastructure, needed to ensure the construction of Northstowe can go ahead.
Alex Plant, chair of the Northstowe Delivery Board and chief executive of Cambridgeshire Horizons, said: "This delay is nobody's fault, it is simply the consequence of a much more difficult economic climate which is affecting the whole of the country, and also the time required to plan an exemplar new town."
He added: "We hope that Government can respond to our bids for additional pump-priming money for Northstowe, to enable this exciting development to move forward as quickly as possible and to help reduce the acute housing shortage in our region."
