£9.6bn Thames regeneration planned

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Housing minister Margaret Beckett insisted that the region - stretching 40 miles on both sides of the Thames estuary from east London into Kent and Essex - was "in a strong position to weather the current economic storm and grow in the long term".

She announced plans for a new "eco-quarter" within the Gateway in which green technologies will be developed and tested, along with up to £35 million for parks and other open spaces within the region.

Mrs Beckett will say in a speech to the Thames Gateway Forum in east London: "The financial downturn poses new challenges for towns and communities across the country. But I believe that we have sound reasons to remain optimistic for the Gateway's long-term prospects.

"Over the past year the first contracts have been awarded for the construction of the world's most advanced container port, London Gateway. New schools and campuses have opened across the region, including the Financial Skills Academy at Tower Hamlets. Construction has begun on the Olympic stadium three months ahead of schedule.

"So now is not the time to give up on the Gateway or start watering down our ambitions. In fact, it is more relevant today than ever before.

"And (the) eco-region strategy and Skills Plan are just two of the projects ensuring we remain on course to ensure the success of one of the most ambitious regeneration schemes in Europe."

Day-to-day management of the Gateway will this week be taken over by the Homes and Communities Agency.