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The report states that the area is 'probably the best-connected greenfield site in Britain'
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Residents in a small village have been left furious after plans to house as many as 350,000 people were submitted.
A thinktank put forward the proposal to increase the population of Tempsford, Bedfordshire, from where it currently stands at 600.
According to UKDayOne, the area is "probably the best-connected greenfield site in Britain" to help the Labour Government achieve its housing targets.
However, locals have branded the proposal a "joke" and warn that the new properties would "decimate everything" in their "wonderful" rural home.
Residents in a small village have been left furious after plans to house as many as 350,000 people were submittedGoogle maps/ PA
The new area could be created at the intersection of the East Coast Main Line and the planned East-West Rail line, the New Towns for New Britain report suggests.
Deputy Prime Minister, Angela Rayner has slapped down claims that Labour want to "concrete over" the countryside - amid plans to deliver 1.5million new homes over the next five years.
"It is a complete joke," Tempsford resident Mark Cleary told the Daily Mail.
"There's nothing wrong with a few new houses but to turn a village with historic connections to the Doomsday book into a city is mad.
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"I cycle for miles every day and I see all of the wildlife, deer, rabbits - it's wonderful.
"I've got sympathy for the need for new homes but to expand here is crazy."
Paulette Smith, 64, has lived in Tempsford since 1996 added: "The big boys come in and do it anyway, no matter how much we shout and scream about it.
"It doesn't matter what government it is, they're all the same.
A thinktank put forward the proposal to increase the population of Tempsford, Bedfordshire from 600 to as many as 350,000 people
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"I just can't envision more than quarter of a million houses in this beautiful little village.
'They'd need a GP, a dentist, schools and a shop and we don't even have that now - all we've got is a farm shop."
Despite the outcry, the report claimed there is an "exceptionally strong case" for building the supertown and it has "every prospect of becoming a major economic centre".
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