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No changes to New Homes Bonus, says Javid
There will be no changes to the New Homes Bonus in the local government financial settlement for 2018/2019, communities secretary Sajid Javid has announced.
In a consultation on the settlement launched in September, the Department for Communities and Local Government proposed linking the bonus to numbers of successful planning appeals and raising the 0.4% baseline.
But in a statement to parliament today on funding for councils next year, the communities secretary said he had “heard concerns” about the proposals and that no changes would be made to the scheme.
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The New Homes Bonus was introduced by the coalition government in a bid to encourage local authorities to grant more planning permissions.
It gives financial rewards to councils in England for new housing developments, with nearly £7bn paid out under the scheme since it was introduced in 2011.
Beneath a housing growth 0.4% baseline, which was announced in December 2016 and will come into effect in 2018/19, councils will not be awarded any cash.
The changes mean the bonus only rewards ‘additional housing’ rather than normal development levels, but have been widely criticised by councils.
Mr Javid told MPs: “Following conversations that I’ve had with the sector, I have been persuaded of the importance of continuity and certainty in this area.
“So today I can confirm that in the year ahead no new changes will be made to the way New Homes Bonus works and that the New Homes Bonus baseline will be maintained at 0.4%.”
Just over £946m in New Homes Bonus payments will be allocated in 2018/19.
John Fuller, chair of the District Councils’ Network and leader of South Norfolk Council, said: “District councils are at the heart of growing the national economy for over two thirds of England and have consistently demanded that the powerful incentives to build homes are not diluted by further changes to the New Homes Bonus and we’re pleased the Government has listened to us on this point.”
