PROPOSALS to build an eco-town in Oxfordshire are viable despite an estimated £4.1bn bill, a new Government report has said.

The developer behind the Weston Otmoor scheme, for Weston-on-the-Green, near Bicester, has been given a major boost by a study into the financial viability of all the eco-towns remaining on the Government’s national eco-shortlist.

The new report from the Communities and Local Government Department (CLG) says the scheme to build a 15,000 settlement with its own tram system near a rebuilt A34/M40 junction is financially sound.

Opponents of the scheme believe the fall in property prices makes the scheme unrealistic.

The leader of Oxfordshire County Council, Keith Mitchell, earlier dismissed developer Parkridge’s proposals – which included building an east-west rail link – as “pie-in-the-sky fairytale plans”.

But the Government study found the eco-settlement could well be able to pay for itself, without the need for Government money.

The report said: “The financial assessment indicates that the development proposal has the potential to generate sufficient value to cover the direct and indirect costs of delivery, without recourse to public subsidy, over and above existing public funding sources, such as social housing grant.”

But it identified cost issues and aspects that needed further work, including proposals to improve the M40 junction and fund rail, road, tram and bus facilities.

Parkridge director Roger Sporle said: “We welcome this financial assessment which gave our proposals the highest possible rating. It demonstrates that Weston Otmoor... can be delivered at no cost to the public purse.”

But Chris Cousins, the county council’s head of sustainable development, said: “The report seems to acknowledge that Parkridge’s proposals are based on draconian traffic-management measures, including huge tolls for residents. However, it then fails to acknowledge that this will deter many potential buyers and thus affect the viability of the scheme.

rlittle@oxfordmail.co.uk