Government injects £750,000 into Caldon Canal development

By Susie Sell

A housing development along the Caldon Canal is to receive a government cash injection to help carry it through the recession.

Work began at City Waterside, North Staffordshire, last year but plans to create 2,500 canalside homes have slowed considerably in recent months.

The government’s Homes and Communities Agency (HCA) will invest £750,000 in the scheme to ensure work continues throughout the economic downturn.

Paul Spooner, regional director of the HCA, said: “The credit crunch has not helped housing developments in the area. But we have got much of the infrastructure in place.

“We are particularly keen to ensure that flagship housing developments like City Waterside do not fall victim to the slump.”

The HCA will receive a percentage of the profit when the homes are sold. It will invest £36.9m in housing developments across north Staffordshire between 2009 and 2011, to ensure they stay afloat during the recession.