Comment

New towns to deliver £50bn economic boost and sustain 5,000 jobs annually

Ahead of the Autumn Statement and with much of the debate focused on tax measures and fiscal tightening – long-term measures that build economic resilience and boost revenues, particularly for local authorities – are more important than ever. Drawing on our new economic modelling and analysis, Senior Director, Economics, Richard Laming and Director, Economics, Andrew Lowe examine how the 12 new settlements in the Government’s New Towns programme could deliver a once-in-a-generation economic dividend – and why turning them into thriving economic engines will depend on getting delivery right from the outset.

Investment with local impact

Government plans for the next generation of New Towns could unlock significant economic benefits. Following the launch of the New Towns Taskforce’s report and the Government’s response, we’ve undertaken new economic modelling to explore what this could mean in practice – reviving a concept that created post-war economic success stories like Milton Keynes. 

At a time when local authorities face mounting pressure on budgets, the potential uplift in long-term revenue streams is significant. Our analysis demonstrates that the 12 recommended locations could create an investment boost of £50bn, sustain 5,000 construction jobs annually while generating over £560m in annual council tax revenue every year once completed.

The programme could deliver £1.7bn in first occupation spending alone, providing a crucial boost to local high streets and services across England. However, success will depend on avoiding "dormitory towns" lacking jobs and infrastructure.

Our modelling shows new towns are not just a housing supply solution – they are an economic engine in their own right. This starts with construction but should include space for permanent jobs within new towns in order to secure their long-term sustainability along with good links to surrounding centres of employment.

Planned carefully, they can underpin economic growth in local communities and create lasting social value. But this will only be realised if Government takes a joined-up approach with investment in skills, training and employment. Big wins are achievable through investment in capacity building within the construction sector.

If the programme of New Towns was to be expanded to include complementary locations and settlements the economic dividends could be even greater, along with the benefits of meeting more housing need.

However, the true test will be creating sustainable, inclusive communities. This requires embedding investment in skills and training as a key part of the construction process which will span decades, while ensuring new settlements become thriving places with integrated employment and social infrastructure.

An opportunity to make good on delivery 

New towns offer a unique opportunity to hardwire sustainability into the DNA of place – from climate-adaptive infrastructure and active travel to affordable housing and community-led design. They should be seen not simply as housing solutions, but as strategic platforms for long-term investment, skills and innovation.

The Government’s renewed focus on new towns is both timely and welcome. If delivered with vision and ambition, these places can support regional prosperity, net zero delivery and social impact on a scale few other planning tools can match.

The publication of a shortlist is just the beginning and in and of itself is not sufficient to meet national housing need. Sites not shortlisted should view this as a call to action – there is still time to demonstrate the ambition, alignment and deliverability needed to come forward in future waves and through Local Plan allocations. We are already supporting clients and local authorities in strengthening the case for new settlements that meet needs and plan sustainably for jobs and infrastructure.

A new benchmark for deliverability

The Government is setting a new benchmark for what “deliverable” looks like. Understanding this benchmark is crucial for any site hoping to secure future support, whether through national policy, local plans or strategic investment.

For institutional investors, asset managers, and developers, the shortlist sends a strong message about where the Government sees long-term value, and where public support might follow. The New Towns programme is already shaping the investment landscape, creating policy-backed areas of confidence that are likely to attract infrastructure funding, planning fast-tracking and wider regeneration spend.

Now is the time for genuine collaboration across the public and private sectors to make these plans work in practice – delivering places that serve, delight and that inspire.

Key findings from Turley's analysis:

• 5,000 construction jobs sustained annually for decades
• Over £560m in council tax revenue annually for local authorities
• £1.7bn first occupation spending boosting local economies

For further advice on the deliverability of new settlements, or to learn more about our economic modelling and analysis, contact Richard Laming or Andrew Lowe.

18 November 2025