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Chancellor Gordon Brown threw his weight behind Lord Rogers' urban taskforce report in this week's pre-budget statement.

Brown endorsed key recommendations of last year's landmark report, including a reduction of VAT on property conversions.

Lord Rogers praised the measures, hailing them as a powerful tool for achieving an urban renaissance.

Referring to the Rogers report, Brown said of his proposals: "This is a radical reform of tax incentives to raise business investment and economic activity in high unemployment areas."

Other key measures announced by the chancellor include exemption of stamp duty on developments, tax relief for cleaning up contaminated land and reduced VAT on church building repairs.

Lord Rogers said the measures were good news for cities but added that Brown's proposals for VAT fell short of the urban taskforce recommendations.

Rogers said: "The chancellor's statement contains measures on which the urban taskforce has campaigned for the past two years.

"Abolishing stamp duty on inner city property and reducing business rates will help breathe commercial life back into our towns and cities."

"We are moving in the right direction and look forward to an urban white paper that further builds the momentum."

Rogers' positive response was backed by the Council for the Protection of Rural England, which also said the proposals would breathe new life into cities and protect the countryside from sprawl.

The House Builders' Federation also welcomed the measures, especially the reduction in stamp duty as a means of shifting housebuilders to brownfield sites.

However, a spokesperson raised concern that the stamp duty reduction would be restricted to certain deprived areas.

Construction Products Association chief executive Michael Ankers praised the VAT measures. He said: "It's a foot in the door. The measures are something to work on."

The Construction Industry Council was more cautious in its response to the chancellor's announcement.

Chief executive Graham Watts said he was waiting for more detail to what exactly the proposals added up to.

He said: "It's better news for construction and doesn't give rise to any worries. He [Brown] mixed prudence with interesting changes but you've got to read the small print."