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Changes to new Homes Bonus could favour counties?

Date: 18/12/2015

Plans to reform the New Homes Bonus coulkd reduce its effectiveness.

Steve Ingram, the Society's Junior Vice-President, told Planning magazine he predicts that in two-tier areas more money could go to county councils. Ingram believes that the government wants to change the present arrangement (of 20 percent going to the county) "in favour of the county to meet the social care and other budgets." This, he argues, could "cause problems because it will become very opaque and people will not understand the relationship between growth and the bonus".

Ingram agrees the bonus scheme has been reasonably successful in encouraging local authorities to build more houses. However, he adds that it is difficult to assess the success because some councils "might have been pro-growth anyway" and other councils are "still not perceived as open to sustainable growth".

Ingram argues that reducing the number of years the bonus is paid out to four will diminish the scheme's attractiveness.

Steve_Ingram(3).jpg Steve Ingram

  • These comments were made before the DCLG consultation was issued: click here

 

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