The Thames Gateway contains the largest collection of brownfield sites--7,500 acres--close to a capital city in Europe. Much of the state investment will go on improving transport links, and Prescott said he expects public funding to lever in additional private sector investment of at least £1 billion across the Gateway.

John Prescott said: "This money will make a real difference to people in the Thames Gateway. It will be used to clean up brownfield land and build decent homes which people will live in through choice not necessity. Our long-term spending plans will give developers the confidence to invest in high quality, high density development which will make the Gateway an exciting and attractive place to live and work."

A number of strategic development locations have already been identified, many focusing on the new Channel Tunnel rail link. Major developments are planned around the two new international rail stations at Stratford in east London and Ebbsfleet in north Kent.