A parliamentary report has raised concerns over the Labour Government’s progress in delivering its pledge to build new towns, warning of a potential failure to meet housing targets for the next generation. The report comes two years after Labour promised to construct 1.5 million homes by the end of the current Parliament, yet no construction has begun on any of the planned new towns.

Lord Gascoigne, a Conservative and chair of the House of Lords built environment select committee, described the Government’s lack of movement on the initiative as a “doom loop.” He emphasized the importance of beginning physical construction soon, urging the Government to put “spades in the ground” to capitalize on what he described as a “once-in-a-generation opportunity” to stimulate economic growth and significantly increase housebuilding rates.

The report specifically highlighted concerns regarding progress on seven proposed new towns, each expected to provide between 10,000 and 40,000 homes, alongside employment opportunities aimed particularly at young people. Labour had previously identified three “promising locations”—Tempsford in Bedfordshire, Leeds South Bank, and Crews Hill in Enfield, north London—where it hoped construction would start before the current Parliament concludes in 2029.

While Lord Gascoigne acknowledged that Matthew Pennycook, the housing and planning minister responsible for the Government’s New Towns Taskforce, has made advancements in planning reform efforts since 2024, he maintained that the situation now demands concrete action. “Frankly, it is time to act,” Gascoigne said, reflecting growing frustration with the slow pace of progress.

The Government’s New Towns Taskforce was created to facilitate the development of major housing projects and associated infrastructure. However, delays in moving from planning to construction stages have prompted scrutiny of whether Labour can fulfill its ambitious housing commitments within the current parliamentary term.

As pressure mounts, stakeholders from across the political spectrum are closely monitoring the Government’s next steps to determine whether it can translate its housing vision into reality, with the potential consequences for the country’s housing supply and economic development hanging in the balance.