Research released today reveals that Local Authorities across the country are losing out on millions of pounds in central Government funding for failing to build the homes their areas need. At a time when all Local Authorities have seen their funding cut and are making difficult budgetary decisions, the new figures show that Local Authorities will in future be missing out on up to £27M a year by scrapping previous plans for homes or not building enough to meet the needs of their communities
The New Homes Bonus is a cornerstone of the new ‘localism’ based planning system. The Government hopes it will incentivise Local Authorities – who have already seen their general funding cut – to facilitate housing construction, enabling the Coalition to meet its objective of building more homes and alleviating the country’s growing housing crisis.
Last week Local Authorities across the country learnt for the first time how much they will receive from central Government this year for building homes. Some will gain over £4M in New Homes Bonus whilst others will receive nothing.