Councils fight new homes plan

Government plans to build almost half a million homes across London's commuter belt are set to be unveiled today.

Deputy Prime Minister John Prescott says there is an urgent need for 496,000 new homes by 2021. But local councils believe this number of homes is excessive.

They fear roads, trains, schools and hospitals would be stretched beyond breaking-point and say there is little evidence so many new homes - 24,800 a year - really need to be built.

The East of England Re gional Assembly, which represents 54 councils, from Hertfordshire to Norfolk, is today expected to reject Mr Prescott's targets.

It wants a maximum of 478,000 homes, and the resulting row with the Government is likely to spark a public inquiry that may not be resolved until 2006. Mr Prescott believes more homes must be built to sustain a growing economy and tackle soaring property prices.

He says the new settlements need not become "dormitories" for London. His "sustainable communities" would be in four growth areas - the Stansted-Cambridge M11 corridor, the Thames Gateway, Milton Keynes and Ashford in Kent.