Housing development funding at old MG Rover plant scrapped

The proposed £3.6 million funding from the government for the housing scheme on the former MG Rover site has been scrapped with prime minister David Cameron keen to defend the government's decision.

The Labour government had agreed to provide £3.6 million to subsidise the construction of 115 new homes Birmingham at the Longbridge site. This was part of a large scale development to include 1,450 new homes together with shops, offices and a new college.

The funding was set to be provided under a scheme called Kickstart, which provides subsidies for developments that would normally be funded privately, in an effort to assist the construction industry in the credit crunch.