THE NEW TOWNS

7. A POLICY FOR NEW TOWNS

At several points this survey has indicated some of the ways in which
the New Towns might be helped better to fulfil both their original purpose
and, indeed, to go beyond it in certain respects. What is needed, however,
is a Ministry which really believes in the idea, which regards New Towns
as something more than a sector or the housing front which can be left more
or less to its own devices, and which is prepared to make the success of
the first group the justification for a second series.
There is ample evidence that the Conservative Government is lukewarm
about New Towns. Local Conservative Associations usually fought against
the establishment of a New Town in their area, and only later began to
come to terms with it; the Conservative Party in Parliament, though it did
not oppose the original Act, has never shown any enthusiasm for it; and
there have been many attacks on New Towns in the Conservative Press and
publications. In January, 1954, the Economist expressed its doubts about
‘continued Government backing,” and wrote: —
There are signs that the lukewarm support that the Treasury has
hitherto given to the New Towns is falling off . . . if the Treasury will
not provide the money, the New Towns must either stop operations or
lease or sell land on terms which involve both loss of control and loss
of profits in years to come. There may be a case for Treasury restrictions
 on public loans to the New Towns; but if so, they should be
allowed to raise money by other means. [Through independent loans.—
N. M. Otherwise a Development Corporation becomes even less
independent than a local authority and has more complicated problems
of co-ordination.’
Some of these doubts have been confirmed, notably the disposal of leases
for independent development in some of the town centres. There is, moreover,
 a certain anxiety which was not directly expressed by the Economist
yet is widespread among people who wish to see the Corporation retain
the control originally given for them. This is an anxiety lest parts of the
New Towns, or even residential property as a whole, should eventually be
sold off to private investment interests, leaving the Corporations or their
successors in title merely as owners and managers of the largely non-earning
public service and amenity assets. 1 do not suggest that this idea has yet
been formally proposed. But should a Conservative Government remain
in office for any length of time, there is a danger that something of this sort
might be proposed when the problems of hand-over begin to be faced.

A Comprehensive Policy
I. Financial. The New Towns are not unique in their financial
problems. A lower rate of interest is clearly required for all kinds of public
works. Yet a general reduction in the interest charges would make a substantial
 difference to New Town revenue accounts, permit more flexibility
in Corporation finances, and help reduce the rent burden. The supply
of capital at a rate not exceeding three per cent. p.a. is therefore urgently
desirable.