Local councils have struck a £30m deal with the promoters of the first homes at the planned town of Northstowe, a planned new town to the north-west of Cambridge, for investment in community facilities – including funding for a primary and secondary school.

The contributions agreed follow a deal being brokered by South Cambridgeshire and Cambridgeshire County councils with the promoters of the first 1,500 homes, Gallagher Estates.

A report presented to the Northstowe Joint Development Control Committee today outlines the terms of the agreement which will get the new town off the ground.

The legal agreement includes:

• £10m for a new primary school

• £8m contribution toward a new secondary school

• Almost £6m toward transport, including new cycle routes, footpaths and a contribution for the Cambridgeshire Guided Busway which is already in place

• £1.5m for a community centre

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• £1.5m for sports pitches

• £1.1m for a sports pavilion

• Over £1m for drainage, which will include improvements for nearby Longstanton

• Over £500,000 for parks and open spaces.

The initial development of new homes will also include a local centre with shops and employment opportunities as well as a household recycling centre.

The legal agreement has been finalised by lawyers and will soon be signed by all parties before being sealed. Once completed, the outline planning permission already approved by Councillors for phase one will be issued.

As soon as planning permission has been granted, a series of detailed planning applications will follow, which will include the design and appearance of homes. These will be consulted on with residents.

Subject to the detailed planning applications being agreed, developers have said to the councils that work could begin on site later this year.

One in five of the homes in the initial development will be affordable rented or shared ownership. However, Councillors are also expecting that a variety of other homes will be built in the first phase that are open to buy or rent for all residents with the support of schemes such as 'Help to Buy', mortgage guarantee and similar Government backed initiatives which may be available.

To make sure the secondary school can be delivered as early as possible alongside the first development of homes at Northstowe, the Homes and Communities Agency – which owns the majority of the government land that the future town will be built on – will make land available. The Agency is working together with Gallagher, the County Council and South Cambridgeshire District Council to bring forward the new town which will have up to 10,000 homes.

(CD/JP)