Fears over the funding of key regeneration programmes are to be addressed by a working group that met for the first time this week.
The Office of the Deputy Prime Minister set up the group, which has until December to recommend ways to deliver John Prescott's sustainable communities plan.

The group will tackle the question of how to bankroll plans for four growth areas, including the establishment of a city the size of Leeds in the Thames Gateway, to the east of London.

The magnitude of Prescott's ambitions has led to unease among some regeneration experts, who fear that the proposals may not make financial sense.

A source in the working group, which has 18 members, said: "The problem is a whole plethora of funding ideas has been suggested. We have got to come up with two or three templates that would help out, particularly PPP models."

Ideas on the table included a PFI funding model and LIFT, a procurement method borrowed from the Department of Health that bundles together small construction schemes.

The two-hour meeting on Tuesday was chaired by Rob Bennett, director of regeneration consultancy BBP. The group, which will meet every month, includes British Property Federation chief executive Liz Peace, ODPM official David Edwards and representatives of English Partnerships and developer Grosvenor.

A spokesperson for the ODPM confirmed the inaugural meeting had taken place on Tuesday, adding: "There is little to tell at the moment."

Any ideas on how Prescott's plans should be financed? Email building@cmpinformation.com