Bid to build 240,000 new homes in region scrapped

The new coalition has announced it will live up to the Conservative manifesto pledge to sweep away Labour's controversial regional strategy in which Ministers demanded far higher levels of house building than proposed by councils.

The system of centrally-imposed targets – attacked for forcing new homes on unwilling communities – had also been opposed by the Liberal Democrats.

By ripping up the regional spatial strategy, which sets out housebuilding targets, the Government is likely to allow councils to revert to their initial assessment of how many homes are needed, which could see the number planned for Yorkshire and the Humber over the next 11 years drop from 242,0000 to 182,000.

In their election manifesto the Tories proposed offering financial incentives to councils – such as keeping a greater portion of council tax – to encourage them to build more homes.

The scrapping of the targets, which the Yorkshire Post revealed in March would be one of a new government's first acts, was confirmed yesterday as Prime Minister David Cameron outlined his plans to create a "big society" of community work and social enterprise, which he said would be one of the "great legacies" of his Government.

Among other policies agreed by the Tories and Liberal Democrats, communities will be allowed to bid to take over their post office or pub, councils will benefit from a "radical" devolution of power from Whitehall and public sector workers will be able to take over running of services.