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  6. New Homes Bonus cash announced

New Homes Bonus cash announced

The Coalition government hasannounced the final allocations to local authorities under the New Homes Bonus scheme for 2011-12, worth a total of £200m.

All parts of England will receive significant funding from the scheme. Some 40 councils will receive seven-figure sums with the top beneficiary being Tower Hamlets in London which has been allocated £4.2m. Islington, another London council, comes in second with an allocation of £3.7m. Two northern councils, Bradford and Manchester, are to receive more than £2.5m as is Milton Keynes.

Two upper tier councils, Kent and Essex, have been allocated seven-figure grants. The funding is not ring-fenced and councils will be able to use it according to the wishes of their local communities.

In Parliament housing minister Grant Shapps was asked if the Government would back the suggestion from the Campaign to Protect Rural England for an enhanced rate of New Homes Bonus for brownfield sites to encourage regeneration and reduce pressure on the release of Green Belt land.

Shapps replied: “I looked carefully at the New Homes Bonus and at where there should be an uplift and I came to the conclusion that the only uplift we would give would be to those who built additional affordable homes, and that is a block grant of £350 per home. The Green Belt is entirely protected; that is in the coalition agreement and we stand by that position.”

Read the Commons Hansard record (4 Apr 2011, column 725).


Roger Milne 

7 April 2011