Developers are encouraged to build on Brownfield sites
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More than £23m in government cash has been given to Suffolk to boost affordable home building on Brownfield sites, infrastructure and jobs.
Growth will centre on Ipswich and Bury St Edmunds in a new 20-year plan for the east of England.
Communities minister Parmjit Dhanda said the next generation will have nowhere to live if homes are not built.
"The plan will deliver affordable housing, better transport networks, infrastructure and jobs growth."
Millions of pounds of government funding are now available for schools, hospitals, leisure centres and transport links.
In addition, a community infrastructure levy being considered by Parliament could create another important funding source for councils planning to encourage new homes building.
Greenbelt to increase
Mr Dhanda said: "The East of England needs a long term vision to address housing shortages and to strengthen the economy."
The key points of the plan announced by East of England Minister, Barbara Follett at Letchworth in Hertfordshire include a housing growth target of 508,000 new homes by 2021.
Job growth targets have been increased from 440,000 to 452,000 and include the addition of Bedford as a key employment location.
It has also identified areas where further work should be carried out to determine the additional measures needed to tackle congestion.
The social need for housing is recognised with a minimum affordable housing target in new developments set at 35%.
Water management is recognised as an important issue and the plan emphasises sewage work investment needed to reconcile growth with river quality.
Landfill of untreated waste is to be eliminated by 2021.
Hertfordshire's green belt is to increase and house building encouraged on Brownfield sites across the east and new eco-towns are recognised as part of strategies to meet housing shortfall.
Local authorities are now being encouraged to implement the plan according to the needs of their individual populations.
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