Planners in Suffolk have announced their favoured sites for almost 4,000 new homes - about half of which will be on greenfield land.

The St Edmundsbury Borough Council scheme, which outlines the proposed expansion of Bury St Edmunds and Haverhill, also includes proposals for a high-tech business park, relief roads and schools.

The announcement marks the start of a three-year-long consultation process which could lead to public inquiries if major objections are raised.

But Mike Ames, the councillor in charge of development, said a shortage of housing was "a national problem that all local authorities have to take responsibility for".

Bury and Haverhill are growing towns and this is a great opportunity for economic growth

Councillor Mike Ames

The proposals are designed to address housing need until 2016.

Around Bury, 800 new homes are envisaged at Westley Park, next to Newmarket Road and the A14.

Forty per cent will be available through housing associations at affordable rents.

The developer will also have to provide a school, shops, leisure facilities, a 20-acre high-tech business park, and a country park to act as a buffer between the town and Westley village.

Chairman of Westley Parish Council David Martin said: "It's not ideal but we've been pressing for a relief road for Westley for 16 years and this could end the problem."

"Not everyone will be happy, but it is a fair trade-off."

Bury would also get more than 1,000 homes on former industrial "brownfield" sites such as the Station Hill area.

Village plans

Over in Haverhill, 400 homes would be built on brownfield land, but a further 1,150 are planned for a greenfield site to the north of the town between the A143 and Withersfield Road.

The developer would also be required to provide schools, community facilities, social housing and a relief road.

Five villages are also earmarked for growth, and it is hoped this would ensure the survival of existing schools, bus routes and shops.

Mr Ames said: " Bury and Haverhill are growing towns and this is a great opportunity for economic growth.

On display

"The high-tech business park will offer an alternative to Cambridge and be part of the whole A14 corridor idea."

Public consultation is now due to begin in January and could lead to the approval of the local plan in 2005.

Building work would then begin in 2008.

The plans will be on display at the borough council's offices in Bury and Haverhill next week.