Councillors welcomed a Budget announcement of £3 million investment in housebuilding and development.

Chancellor George Osborne announced yesterday that the Elstree Way Corridor will be given a £3 million loan in his budget yesterday.

Hertsmere Borough Council bid for the money from the Homes and Community Agency to pay for new infrastructure required in the Elstree Way Corridor action plan.

The corridor earmarked for development in the plan runs from the A1(M) along Elstree Way, to the Tesco roundabout at the bottom of Shenley Road.

Hertsmere Council's area action plan is currently being considered by the Secretary of State for Communities and Local Government after an independent examination last October, and the report is due before the end of March.

The area has been designated as a government housing zone, which have been set up to encourage the redevelopment of brownfield sites to meet the need to increase housing supply.

Councillor Harvey Cohen, who is responsible for planning and localism, said: "This is good news as it will help us to deliver the affordable housing we need for the area more quickly and for the benefit of Hertsmere residents."

Chief executive of Hertsmere Borough Council Donald Graham said: "The availability of infrastructure funding will improve the viability of development sites.

“We would therefore expect that developers will be able to meet our requirements to provide affordable homes on sites within the Elstree Way Corridor.

“Our plans aim to not only ensure that we continue to deliver new, good quality homes for the area and to meet our housing targets stipulated by the government, but also to guide redevelopment and regeneration for the benefit of residents and local businesses."