Southend Council’s leader has fired a warning shot at developers prepared to buy up land and sit on it - telling them to use it or lose it.

John Lamb has welcomed plans to prevent firms sitting on large parcels of land once they have planning permission.

He also said extra powers to compulsory purchase land, being held by so-called land bankers, would be put to full use by the council.

On Wednesday, Chancellor Philip Hammond announced a raft of measures to provide extra homes across the UK. This included a review of developers who fail to go-ahead with schemes, in some cases for years, like what has happened at Marine Plaza, Southend, and other developments across south Essex.

Mr Lamb said: “It’s totally wrong these companies buy up land and don’t develop it. We should have powers to make it happen within a decent time scale.”

He sited Marine Plaza, which despite getting planning approval in 2015 for a £60million development of 282 flats in six tower blocks, plus restaurants, bars, and shops has stalled. It is still being used as a temporary car park and is one of the most prominent seafront development areas.

Mr Lamb said: “We have been trying to get that moving. They have got planning permission. If they let that lapse they will have to apply again. If they fail to develop land with a decent time scale then councils should have the right to compulsory purchase without going through the whole long-winded time scale because we’ve already waited too long .”

Announcing the move, Mr Hammond said: “I am establishing an urgent review to look at the gap between planning permissions and housing starts.

“It will be chaired by my right honourable friend for West Dorset. And will deliver an interim report in time for the Spring Statement next year.”

Mr Hammond’s budget reforms included £44billion capital funding to support house-building and deliver 300,000 new homes a year across the country.

The chancellor also said he would assist councils to borrow money for house building.

The measures were welcomed by Mark Flewitt, councillor responsible for housing, planning and sustainability.

He said: “On the face of it, this sounds like a welcome move, as our ability to provide more affordable housing is currently restricted by a central Government cap on borrowing money and a cap on the amount of money we can reinvest into new affordable council housing through sales of land and property.

“Any move to relax these restraints would be viewed favourably, but we need to await the detail of these proposals before we can consider the impact on housing in Southend.”

Mr Flewitt added: “I am also pleased to hear in the budget announcements that a new homelessness taskforce is be created to ensure the government meets its target to halve rough sleeping by 2022 and eliminate it altogether by 2027.

“There is a clear need for renewed impetus and action on this on a national scale.”