BUSINESS leaders have expressed their delight after  plans to build a new town  near Exeter received a £12  million boost.

The South West Regional  Development Agency (SWRDA) has approved an investment to kickstart the development at Cranbrook, the  new town planned to the east  of Exeter.

The news comes after fears  that the Cranbrook project  was to be put on hold due to  the recession and the downturn in the housing market.

 As reported in the Echo  last year, the various developers involved said that they  were committed to the project but would not pursue  their plans in the current  financial climate.

Work is now due to start  on the development near  Rockbeare in March next  year.

 Cranbrook will consist of  2,900 homes in the first phase  and around 6,500 in total.

Proposals for the town will  include schools, a new railway station, community facilities and a biomass energy  centre, which was last week  awarded £2.5 million of Government funding.

The £12 million investment will help pay for a package of infrastructure projects which will allow the  first homes to be built as well  as releasing employment  land to create thousands of  jobs.

The investment is part of a  package of support from the  public sector which aims to  deliver one of the first and  largest ‘low-carbon’ developments in the UK.

 It will make a major contribution to the SWRDA’s  ambitions for a low-carbon  economy in the South West.

The £12 million investment includes £3 million  towards a £10 million Clyst  Honiton bypass, £4 million  for the main road serving the  first phase of Cranbrook and  linking to its new railway  station, and  £5 million towards a new primary school  serving Cranbrook.

 The windfall comes from  the SWRDA’S regional infrastructure fund and the  Department of Transport.

It brings the total investment in the East of Exeter  area through the fund to £22  million.

 The investment follows  last year’s SWRDA approval  of £10 million  towards a new  rail station for Cranbrook  and improvements to junctions 29 and 30 of the M5.

 Together, the investments  will allow for the initial development of 2,900 homes at  Cranbrook and 75 hectares of  land to support businesses.

 This will help create up to  4,500 jobs and enable key  projects to proceed including the Skypark business  park and Exeter Science  Park.

Tim Jones, chairman of  the Devon and Cornwall  Business Council, said:  “This is absolutely phenomenal news. We have been  keeping our fingers crossed  that the SWRDA would be  able to retain some funding  allocation, with their reduced budget, for this project.

“Together with the money  that has already been allocated for the improvements  on the M5 and the A30, it has  all come together to make a  fantastic package.

“In practical terms, it will  create thousands of jobs in  the Exeter area — in the  initial stages, construction-related work, and jobs  for the future. It is a fantastic  announcement.”

East Devon District Council leader Sara Randall Johnson said: “I am absolutely  delighted that Cranbrook  has been recognised as an  important delivery of local  homes for local people and is  receiving the funding that’s  needed to kickstart this project. This is a long-term plan   and the financial recognition we have had now needs  to be repeated in the future,  because this isn’t the full  amount of funding we are  going to need to make sure  Cranbrook delivers 11,000  jobs for local people  and  vitally needed homes.”

 Derek Phillips, chairman  of the Exeter Chamber of  Commerce, said: “This is  fantastic news because it  now allows this very important development to proceed,  and it’s much needed, of  course, not only to provide  more housing, but also a  large amount of affordable  homes.

“It also fits in with the  development, which is going  to take place, of the Skypark  and science park.

“We have been asking the  Government for help for  some time, so this is very  welcome news.

“The project had been delayed because of the recession and housing market, so  we haven’t had the money to  start things like the Clyst  Honiton bypass, because the  money wasn’t there.”

A spokesman for the Cranbrook New Community Partners said: “Delivery of the  Cranbrook scheme is challenging, particularly in the  current very difficult economic climate.

 “Without the investment  support it would simply not  be achievable at this time.

 “The partners remain  hopeful that with the recent  announcements we are now  very close indeed to achieving this crucial objective and  being able to launch Cranbrook.”

William Mumford, Devon  County Council cabinet  member for economic regeneration and strategic planning, said: “I am extremely  pleased to hear this news.

 “Cranbrook is a key investment area for Exeter and  Devon and this boost for the  road network and a new primary school for Cranbrook  is very welcome.  The Devon  economy is one of our top  priorities for the council  and  a strong partnership between us, the districts and  SWRDA are key to driving  projects like this forward.”

Construction of the  planned Clyst Honiton bypass will pave the way for  Skypark, Exeter Science  Park, the Cranbrook new  community and a freight terminal. Nick Pring, chairman  of the Clyst Honiton Parish  Council, said: “We have been  waiting quite a long time,  hoping there would be advance money from the SWRDA  to get the infrastructure  going — particularly the  Clyst Honiton bypass, as it  directs traffic travelling to  Exeter Airport away from  the village. It secures a bit of  peace for the village, rather  than it returning to the busy  road it was in the past.”

Ian Piper, SWRDA director of development and regeneration, said: “This investment shows how we can  help tackle the effects of the  recession, plan for long-term  growth and build a low-carbon economy which fits with  our own low-carbon aspirations and follows on from our  designation last week as the  UK’s first low-carbon economic area.”