The Labor government has confirmed that £10 million will be provided to help plan the construction of new homes in Cambridge.

The money was announced during Wednesday’s budget and will be spent on developing a housing, transport, water and other infrastructure plan. It will be delivered by Cambridge Growth Company.

In a written statement on Thursday, Housing Minister Matthew Pennycook said there were “significant barriers” to growth and it was “essential” the government helped remove them.

A Liberal Democrat council leader in the region said growth must “meet the needs of our communities”.

It was in March that the ‘Case for Cambridge’ report published as part of the conservative budget. The previous year it was announced that around 150,000 homes would be built in and around the city by 2040.

After the summer general election, the Labor Party confirmed that it was “ambitious for Cambridge” and would work with local authorities to plan for sustainable growth.

The ministerial statement also confirmed that Peter Freeman, chairman of Homes England, would head the Cambridge Growth Company, which was set up to deliver the plans. The organization will receive the £10 million.

In the past there have been concerns about water supply problems in the area, leading to several planning applications being opposed by the Environment Agency.

The Case for Cambridge report suggested a new reservoir and a “water credit” system would help.

Wednesday’s announcement was welcomed by the city’s Labor MP Daniel Zeichner.

He told the BBC that if “the transport infrastructure is achieved, the houses can be built.”

“I think for my constituents that is the biggest problem young people face: they can barely afford to rent. We have to address this,” he said.

Cambridgeshire and Peterborough Combined Authority Mayor Nik Johnson added: “This budget sets out a clear intention to unlock growth in our region, which is vital to sustaining economic success and delivering good jobs and greater prosperity for all. our communities.

“This, together with the Government’s reaffirmed commitment to working with regional mayors, gives us a solid foundation to work with Cambridge Growth Company leading the plan, as well as local partners, on a better future for all.”

Meanwhile, the leader of South Cambridgeshire District Council, Liberal Democrat Bridget Smith, said the government was “making the right noise when it comes to working with local leaders and communities”.

However, he stated that “the proof will be in the pudding.”

He said it was important that growth “met the needs of our communities” and provided hospitals and GPs.

He added that the government needed to “play its part in solving our water shortage and congestion problems”.