Tony Blair is set to scale down plans to build 75,000 new homes in Oxfordshire, writes Ian Townsend.

A Government survey suggested that the homes should be built in the county by 2016 to avoid a potential housing shortage.

But the plans have already met widespread criticism from councillors and MPs who feared the loss of greenfield land.

Now the Prime Minister has stepped into the row and has hinted that the scheme - which would see a total of 1.1 million new houses in the South East - will be scaled down dramatically. Downing Street is said to fear that the house-building programme would divert too much investment from the North and other regions and exacerbate the North/South divide.

Witney North county councillor Brenda Churchill said: "I'm glad Tony Blair is looking at the scheme again.

"I do not know how the Government planned to build so many homes in Oxfordshire and I think the issue has been ill thought out.

"Areas such as Witney that are already growing simply do not have the infrastructure to cope with more homes." The South East England Regional Assembly, which includes Oxfordshire, says that the house-building plans would hit greenfield sites, encourage a drain from the North to the South for jobs and homes, and increase lorry and car use - in direct contrast to the Government's own policies.

David Shakespeare, the assembly's Tory leader, said: "The proposals would have a devastating effect on the economy and the environment of our region.

"We support growth plans put forward by member councils as sustainable and sensible. But the proposals set out in the report are half-baked and would disadvantage not only the South East, but severely damage prospects for urban regeneration in other regions of the UK." The Government is expected to make a formal announcement on the report next month.

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Story date: Wednesday 01 December

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