Osborne announced the plans yesterday on BBC's Andrew Marr show ahead of his Budget 2014 speech on Wednesday this week. He said that Ebbsfleet, which has a station on the High Speed 1 rail line, had been chosen because of its infrastructure capacity and to contribute to the high housing needs in the South East.
The scheme will be supported by the creation of an urban development corporation which will help drive the development through the planning system and be granted compulsory purchase powers to acquire the land needed for the scheme.
"We're going to create an urban development corporation so we're going to create the instrument that allows this kind of thing to go ahead and cuts through a lot of the obstacles that often happen when you want to build these homes," Osborne told the BBC.
"There are already some homes being built on the site, so progress was under way, but it was on a much, much smaller scale and with much less ambition than what I'm setting out today," he added.
The site had previously been subject to plans for a 22,000-home scheme.
