15,000-home garden city to be built at Ebbsfleet

The chancellor told the BBC's Andrew Marr Show the site was chosen because there was "fantastic" infrastructure and it was in south-east England where pressure on housing has been high.

He said local people wanted to see regeneration of the area. Labour suggested an existing plan had been re-announced. The Lib Dems said it was a "massive Tory U-turn".

Speaking ahead of his Budget on Wednesday, Mr Osborne said the government's Help to Buy scheme would also be extended until the end of the decade.