The Government’s announcement of seven new towns is the most ambitious building programme in over fifty years. For small and medium-sized businesses across the UK, it is not simply a housing story. It is a multi-decade commercial opportunity on a scale that most SMEs have never encountered. The question is whether you are positioned to take advantage of it. – Kathryn Pearson, Managing Director, JGP Consultancy
The Scale of What Has Just Been Announced
On 23 March 2026, the Ministry of Housing, Communities and Local Government launched a public consultation on proposals to take forward seven new town locations across England as part of the most ambitious housebuilding programme in more than half a century. This is not a planning paper or a discussion document. This is a commitment.
The seven proposed locations are:
- Tempsford in Bedfordshire, where up to 40,000 homes will be built around a new East West Rail station;
- Crews Hill and Chase Park in Enfield, delivering up to 21,000 homes to address London’s acute housing need;
- Leeds South Bank in West Yorkshire, with up to 20,000 homes capitalising on the city’s economic momentum;
- Manchester Victoria North, with at least 15,000 homes and a new Metrolink stop;
- Thamesmead in Greenwich, up to 15,000 homes enabled by a DLR extension;
- Brabazon and the West Innovation Arc in South Gloucestershire, up to 40,000 homes; and
- A major expansion programme at Milton Keynes in Buckinghamshire.
Collectively, these sites have the potential to deliver hundreds of thousands of new homes over the coming decades. The Government has backed this with a new National Housing Bank, operational from 1 April 2026, carrying up to £16 billion of financial capacity, alongside an additional £400 million in subsidised lending support.
Each new town is not merely a housing development. The Government has been explicit: these are whole communities, built from scratch, requiring schools, healthcare facilities, transport infrastructure, digital connectivity, retail, green space and employment premises to be planned and delivered alongside the homes themselves.
For the business community, that distinction matters enormously. This is not a housebuilder’s story. It is everyone’s story.
| Key Government Commitment The Government aims to get spades in the ground on at least three new towns within this Parliament. A public consultation runs until 19 May 2026, with final locations to be confirmed later this year. The New Towns Unit, supported by four interim advisers with deep experience in major regeneration, is already operational. |
Why This Is the SME Opportunity of a Generation
It would be easy to look at a programme of this size and assume it will be dominated by major national contractors and global consultancies. That assumption would be both understandable and wrong.
The Government has signalled clearly and repeatedly that SMEs are central to its economic mission. Under the Government’s Plan for Small Business, increasing procurement spend with SMEs has been declared a national priority. Individual departments have, for the first time, published binding spending targets, with government committing to direct spending of over £7.4 billion a year with SMEs by 2028. The Procurement Act 2023 has also reformed public procurement rules with the explicit aim of reducing barriers for smaller businesses and making it simpler for SMEs to win government contracts.
For a programme as geographically distributed and sector-diverse as the new towns, the practical reality is that no single national framework or prime contractor can deliver everything. Local knowledge, specialist skills and responsive supply chains are not optional extras. They are operational necessities.
This creates a structural opening for SMEs at every tier of the programme.
| The SME Procurement Mandate Under its Plan for Small Business, the Government has set binding departmental targets for direct SME spend, meaning procurement teams are incentivised and required to route work towards smaller businesses. The Procurement Act 2023 makes it simpler and cheaper for SMEs to bid for public contracts, and requires the publication of procurement pipelines, giving businesses advance notice of upcoming opportunities. |
Which Industries and Business Types Will Be Needed?
The new towns programme touches virtually every sector of the economy. Below is a structured breakdown of the industries and business types that will be integral to delivery, from ground-breaking through to the communities that will live and work in these towns for generations to come.
Construction and the Built Environment
| Construction and the Built Environment |
| Groundworks and site preparation contractors |
| Civil engineering firms |
| Structural engineering consultancies |
| Geotechnical and ground investigation specialists |
| Demolition and remediation contractors |
| General building contractors (residential and commercial) |
| Specialist subcontractors including brickwork, steelwork, roofing and cladding |
| Housebuilders, including SME and custom build specialists |
| Modular and off-site construction manufacturers |
| Quantity surveyors and cost consultants |
| Construction project managers |
| Clerk of Works and site inspection services |
Architecture, Planning and Design
| Architecture, Planning and Design |
| Architects across master planning, residential, commercial and landscape disciplines |
| Urban designers and placemakers |
| Town planning consultants |
| Heritage and conservation consultants |
| Environmental Impact Assessment specialists |
| Landscape architects |
| Interior designers for community buildings, schools and health centres |
| Design and access statement specialists |
| BIM (Building Information Modelling) consultants |
Infrastructure and Utilities
| Infrastructure and Utilities |
| Road and highway contractors |
| Rail and transport infrastructure specialists |
| Water and drainage engineers |
| Electrical grid connection and power infrastructure contractors |
| Gas and energy network installers |
| Telecommunications and digital infrastructure providers |
| EV charging infrastructure installers |
| District heating and low-carbon energy system specialists |
| Traffic management and signage contractors |
| Street furniture, public realm and lighting specialists |
Professional Services and Consultancy
| Professional Services and Consultancy |
| Legal firms specialising in property, planning, procurement and commercial law |
| Accountancy and financial advisory firms |
| Management consultants and programme managers |
| Procurement and commercial advisers |
| HR and workforce consultants |
| Health and safety consultants |
| Equality, Diversity and Inclusion advisers |
| Marketing and communications agencies |
| Public affairs and stakeholder engagement consultants |
| Data and analytics consultants |
| Training and apprenticeship providers |
Environmental and Sustainability
| Environmental and Sustainability |
| Ecological consultants and biodiversity net gain specialists |
| Flood risk and sustainable drainage consultants |
| Energy assessors and sustainability consultants |
| Arboricultural consultants |
| Contaminated land and remediation specialists |
| Air quality and noise consultants |
| Net zero and carbon consultants |
| Renewable energy developers and installers |
Community Infrastructure and Social Value
| Community Infrastructure and Social Value |
| Healthcare facility designers and builders |
| School and education facility constructors |
| Community centre operators and social enterprise developers |
| Childcare providers and nursery operators |
| Sports and leisure facility developers |
| Retail and hospitality fit-out contractors |
| Arts and culture consultants |
| Social prescribing and community wellbeing organisations |
| Housing management and estate services companies |
Technology and Digital Services
| Technology and Digital Services |
| Smart city technology providers |
| Digital connectivity installers including full-fibre and 5G |
| PropTech companies covering planning, modelling and asset management |
| Software developers for housing management and public service platforms |
| Cyber security consultants |
| GIS and mapping specialists |
| Drone survey and aerial imaging companies |
The Supply Chain Opportunity
One of the most important points for smaller businesses to understand is this: you do not need to win a prime government contract to benefit from the new towns programme.
The Tier 1 contractors and lead consultancies appointed to manage major work packages are themselves required and increasingly incentivised to demonstrate robust SME engagement throughout their supply chains. Under government procurement policy, prime contractors are required to register subcontracting opportunities on Contracts Finder above certain thresholds, and departments are actively monitoring whether larger suppliers are creating genuine routes to market for smaller businesses.
The supply chain therefore represents an enormous commercial opportunity in its own right, and in many cases one that is more accessible to an SME than direct government procurement. Supply chain work typically operates on shorter tender cycles, requires less formal pre-qualification and relies heavily on local relationships and specialist expertise.
For businesses that have not previously worked with government or on major programmes, the supply chain route is often the most sensible starting point. It allows you to build a track record, develop the right frameworks and accreditations, and grow your capacity at a pace that suits your business, while still being part of one of the most significant programmes in modern British history.
| Direct Contract Opportunities | Supply Chain Opportunities |
| Government and development corporation tenders | Subcontracts from Tier 1 main contractors |
| Framework agreements | Subcontracts from large consultancies |
| Dynamic Purchasing Systems | Contracts Finder subcontract listings |
| Reserved contracts for SMEs | Consortium partnerships with other SMEs |
| Find a Tender service | Local supply chain partnerships |
Where Are the Geographic Opportunities?
The geographic spread of the seven new towns is significant. This is not a London-centric programme. The inclusion of Leeds South Bank, Manchester Victoria North and South Gloucestershire means that businesses across the North, Midlands and South West have genuine, meaningful opportunities on their doorstep.
For businesses based near the proposed locations, the opportunity is immediate and direct. For those further afield, there are still routes to participate, particularly where specialist expertise is required that cannot easily be sourced locally, or where the scale of demand simply exceeds local supply.
The programme’s ambition to create test beds for innovation also creates specific opportunities for businesses offering novel approaches to construction, sustainability, digital infrastructure and community services.
| A Note on Timing The public consultation runs until 19 May 2026. Final locations will be confirmed later in 2026 and the Government is targeting spades in the ground on at least three sites within this Parliament. For SMEs, the time to prepare is now, not when the first tender notices appear. Frameworks, pre-qualification, capability development and supply chain relationships all take time to establish. |
How SMEs Should Prepare
The gap between ambition and delivery is often where smaller businesses lose out on major programmes. The businesses that will benefit most from the new towns programme are those that start preparing now, before individual tenders are published.
Understand the procurement landscape
- Register on Find a Tender, the central government procurement platform
- Monitor Contracts Finder for subcontracting opportunities
- Familiarise yourself with the Procurement Act 2023 and how it changes the way public contracts are advertised
- Identify which Development Corporation or local authority will be the contracting authority for your target location
Get accreditation and pre-qualification in order
- Ensure your business holds the relevant industry accreditations such as Constructionline, CHAS, SafeContractor or appropriate ISO certifications
- Review which framework agreements are relevant to your sector and consider applying
- Check your public liability, professional indemnity and employer’s liability insurance levels, as major programmes often require higher limits
Build supply chain relationships
- Identify the likely Tier 1 contractors and lead consultancies for your sector
- Attend industry events, meet the buyer sessions and pre-market engagement events as they are announced
- Join relevant trade associations and sector bodies that will be engaged in the programme
Develop your social value proposition
- Government procurement now places significant weight on social value, including what a business contributes to local employment, training, skills and community outcomes
- SMEs are often better placed than large corporations to demonstrate genuine, measurable local social value
- Develop a clear, credible social value narrative for your business before you begin bidding
Consider consortium approaches
- For contracts larger than your business can handle alone, consider forming a consortium with complementary SMEs
- Government departments are running consortium-building workshops specifically to facilitate this
- A well-structured consortium of SMEs can compete credibly for contracts that would otherwise go to national firms
The Moment to Act Is Now
The post-war new towns programme transformed the lives of millions of people. It also built entire industries. Businesses that were involved in Stevenage, Harlow and Milton Keynes from the outset did not just complete a contract. They built capabilities, relationships and reputations that sustained them for decades.
The next generation of new towns offers the same potential. The window of maximum opportunity, when frameworks are being established, supply chains are being formed and relationships are being built, is a narrow one. It opens in the months and years before the first planning consent is granted and the first procurement notice goes live.
The businesses that will benefit most are not necessarily the largest or the most established. They are the ones that understand what is coming, that have prepared their businesses to participate and that have built the right relationships at the right time.
The Government has made its intentions clear. It wants SMEs to share in this. The Procurement Act, the departmental spending targets, the National Housing Bank and the New Towns Unit are all, in their different ways, signals that the door is open to smaller businesses.
The question for every SME in the sectors touched by this programme is a straightforward one: what are you doing today to make sure you walk through it?
About JGP Consultancy Services
JGP Consultancy Services works with small and medium-sized businesses to help them identify, pursue and win public sector and commercial opportunities. We provide strategic advice on procurement, bid management, supply chain positioning and business development, helping businesses of all sizes compete effectively in complex markets.
If you would like to discuss how your business can prepare for the opportunities created by the new towns programme, we would be delighted to hear from you.
This article is intended for general informational and thought leadership purposes. It draws upon publicly available information including official UK Government publications from GOV.UK. Readers should seek specific professional advice before taking commercial decisions. All information is correct at the time of publication (March 2026).
© JGP Consultancy Services 2026. All rights reserved.