Proposals to build a new development in Colchester's Greenstead estate have received a £2.3m boost as part of the government's budget announcements.

Colchester council had applied for the grant from the government's Estate Regeneration Fund to go towards the £40m Heart of Greenstead project that should see 139 new homes built, a new community hub and public open space off Tamarisk Way.

The funding will be used to help enhance Greenstead as part of the Town Deal.

The scheme which, if agreed, would combine the development of 103 new and 36 refurbished high-quality houses (many of which will be affordable housing), an expanded community hub and attractive public space.

The development will be built to Liveable Neighbourhood principles, making walking and cycling choices easier and safer and also includes a bike loan scheme.

Located in the centre of the Greenstead community, there will be more effective and regular public services, including community and health, employment skills and enterprise infrastructure.

Paul Dundas, leader of the council, said: “This is absolutely tremendous news for the residents of Greenstead as it will help us drive forward the plans through the Town Deal to help enhance their quality of life.

“This funding announced by the Chancellor today will bolster the money already set aside through the major investment we have received through the Town Deal to help us make the real improvements needed in the area.

"With the £18.2 million already secured through the Town Deal, this is yet another great example of Colchester Borough Council successfully bidding for money to help deliver better outcomes for our residents.

“While there is still much to do on this project the announcement is a clear marker of the Government’s support for the work we are doing to enhance Colchester now and for the future.”

Colchester received the £18.2 million through the Government’s Town Deal in March this year, plus a further £1m award for two ‘accelerated’ schemes, after being chosen as one of the 101 towns across the country that could apply for up to £25 million from the fund.