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Home » Policy » Leeds South Bank New Town ‘Still on Track’, Minister Says

Leeds South Bank New Town ‘Still on Track’, Minister Says

A.MacGregor by A.MacGregor
3 September, 2026
in Policy | Infrastructure, Latest News
Reading Time: 3 mins read
The Leeds South Bank regeneration area, earmarked as one of England's new towns

The government has insisted its plan to make Leeds South Bank one of England’s first new towns remains a priority, after questions over whether momentum had stalled under the new prime minister

Plans to make Leeds South Bank one of England’s flagship new towns remain on track, the government has insisted, amid questions over whether the programme has lost momentum. Housing minister Matthew Pennycook told a House of Lords committee that Prime Minister Andy Burnham is still committed to the scheme, which would see tens of thousands of homes built across a handful of new or expanded settlements. The Leeds site is one of just three sites earmarked for delivery during the current parliament. The minister acknowledged some announcements had been set back during the change of government but denied the drive had stalled.


Leeds Today Why This Matters For Leeds

This is one of the largest regeneration prospects in the city’s history, so confirmation it remains a government priority matters for Leeds. A designated new town would channel national funding and planning support into South Bank, accelerating housing, jobs and infrastructure on former industrial land beside the city centre. For the construction sector and the wider economy, a scheme of this scale means years of work and investment.


What the Leeds South Bank Plan Involves

The new towns programme, inherited from Sir Keir Starmer’s government, aims to build well-connected new communities with homes, jobs, schools, green space and transport planned from the outset. In March, a draft list named the former Tempsford airfield in Bedfordshire, Crews Hill near Enfield, and Leeds South Bank as the three locations with a realistic chance of delivery this parliament. Under the plans, each new town would provide a minimum of 10,000 homes, with at least 40% affordable. Giving evidence to the Lords Built Environment Committee on 1 September, Pennycook said the government remained focused on getting spades in the ground on at least three settlements before the end of the parliament. He conceded that several announcements had been slightly set back and had to be recalibrated following the leadership change, but insisted the underlying commitment was intact.

“We remain committed to the manifesto commitments in respect of the new towns programme.”

— Matthew Pennycook, Housing Minister

Questions Over Momentum

The minister’s reassurance came in response to pointed questions about whether the programme remained a priority, given the government’s focus had appeared to shift elsewhere since Burnham replaced Starmer in July. Burnham has faced accusations of watering down his housing ambitions, having called for the entire £39bn social and affordable homes budget to be spent on council housing. Pennycook argued that his own attendance at Cabinet was a strong signal of housing’s importance to the prime minister, and said Burnham was bringing lessons from his time running Greater Manchester into the government’s approach. For Leeds, the practical question is timing: the consultation on the new town plans closed in May, and the city will now be watching for firm dates and funding.

Read more Leeds business news across all sectors.


  • Learn more about Leeds South Bank: https://www.westyorks-ca.gov.uk

 

Tags: Affordable HousingAndy BurnhamHousingleedsLeeds South BankMatthew PennycookNew TownsPolicyRegeneration
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