Monday, 18 April 2011

The unfairness of the government's New Homes Bonus unravelling by the day

Residents in Hyndburn are losing out under the Tory-led government’s new housing policy, the New Homes Bonus.

The Bonus is supposed to incentivise councils to grant planning permission for new housing developments by matching council tax for new homes over a six year period.

According to the House of Commons Library, the New Homes Bonus is going to cost tax payers at least £1.2bn a year by 2016 but deliver as few as just 14,000 extra homes a year. Before the budget, Labour called on the government to tax bankers’ bonuses and to spend £1.2bn on delivering 25,000 affordable homes.

Experts are already lining up to say that it won’t work and the Tory party leaders in local government have gone public with their criticisms. In addition to being expensive and ineffective, research now shows that Hyndburn is getting a raw deal from this new Tory policy.

Whilst Richmondshire District Council received £6,272 for each extra home in their community, Hyndburn will just get £63,000 and whilst the City of London has been given £28.51 a head in funding the government has  given Hyndburn council just 82p per head.

Alison Seabeck MP, Labour’s Shadow Housing Minister said:
The New Homes Bonus is the government’s flagship housing policy but it’s expensive, ineffective and now we can see how unfair it is too.

“This country needs more housing and the jobs that go with it. The Tory-led government needs to stop wasting time and money on this policy and get to work delivering more homes.”

Graham Jones:
“I think it’s totally wrong that Hyndburn should be treated in this way by the Tory-led government. If the point of this policy is to reward communities for building more houses then the least they should do is make it fair.
“I want to hear an explanation from this Tory-government why they think that Hyndburn should receive less money per new home than some of the best off parts of the country.”

ENDS

Notes to Editors
1.       “Only 10 per cent of RICS members responding to the January Housing Market Survey felt it [the New Homes Bonus] would be successful in increasing the number of new homes in the market.” Simon Rubinsohn, RICS Chief Economist 18th February 2011 http://www.rics.org/site/scripts/news_article.aspx?newsID=2097
2.       “We question the likelihood of achieving this increase, given the lack of evidence of the likely efficacy of the New Homes Bonus.” House of Commons CLG Select Committee Report http://www.publications.parliament.uk/pa/cm201011/cmselect/cmcomloc/517/517.pdf
3.       21 Tory Council Leaders go public with “serious concerns” about the New Homes Bonus. http://www.insidehousing.co.uk/news/development/homes-bonus-scheme-%E2%80%98will-fail%E2%80%99-in-south-east/6513400.article
4.       Research from the House of Commons Library shows that by 2016 the New Homes Bonus will cost £1.2bn each year with this money top-sliced from the council formula grant – in effect, councils will be paying for this bonus from their own funding.


New Homes Bonus (2011)

Local Authority
2010 Indices of Deprivation NHB per Head Ratio of Share of NHB to Share of Formula Grant
Losers pay the winners
Gosport Con 161 £0.00 0.00
Loser
Hart Con 326 £0.00 0.00
Loser
High Peak Con 191 £0.00 0.00
Loser
Purbeck Noc 199 £2.68 0.00
Loser
Knowsley Lab 12 £0.38 0.05
Loser
Gateshead** Lab 42 £0.36 0.07
Loser
Scarborough Noc 83 £0.07 0.07
Loser
Blackburn with Darwen UA Noc 28 £0.77 0.14
Loser
Oldham Noc 46 £1.17 0.17
Loser
Wirral Noc 103 £0.83 0.17
Loser
South Tyneside Lab 47 £1.07 0.18
Loser
Redcar & Cleveland UA Noc 71 £0.90 0.19
Loser
Cheshire East UA Con 243 £2.38 0.23
Loser
City of London #N/A 259 £28.51 0.25
Loser
Liverpool Lab 5 £2.04 0.27
Loser
Copeland Lab 74 £0.27 0.27
Loser
Newcastle-under-Lyme Noc 152 £2.63 0.28
Loser
Doncaster Lab 39 £1.38 0.29
Loser
Kingston upon Hull UA LD 15 £1.75 0.30
Loser
Rochdale Noc 29 £1.58 0.30
Loser
Wolverhampton Noc 20 £1.89 0.32
Loser
Sefton Noc 114 £1.46 0.33
Loser
Preston Noc 59 £0.36 0.34
Loser
Southend-on-Sea UA Con 117 £1.31 0.34
Loser
Cheshire West and Chester UA Con 195 £0.98 0.35
Loser
Sandwell Lab 9 £2.19 0.35
Loser
Sunderland Lab 38 £2.09 0.38
Loser
Portsmouth UA LD 76 £1.67 0.38
Loser
Stockport LD 167 £1.14 0.38
Loser
Bury Noc 119 £1.38 0.39
Loser
St Helens Lab 64 £1.93 0.39
Loser
Lewisham Lab 16 £2.80 0.39
Loser
Thurrock UA Noc 146 £1.55 0.40
Loser
Enfield Lab 63 £1.83 0.42
Loser
Rotherham Lab 52 £1.98 0.43
Loser
Dudley Con 113 £1.79 0.44
Loser
Birmingham Noc 13 £3.14 0.48
Loser
Torbay UA Con 49 £2.16 0.51
Loser
South Lakeland LD 231 £0.30 0.52
Loser
Waltham Forest Lab 7 £2.95 0.53
Loser
North East Lincolnshire UA Noc 78 £2.40 0.54
Loser
Halton UA Lab 32 £2.92 0.54
Loser
Ealing Lab 61 £3.68 0.54
Loser
Brighton and Hove Noc 67 £2.34 0.55
Loser
Hartlepool UA Lab 30 £2.98 0.55
Loser
Middlesbrough UA Lab 27 £3.45 0.55
Loser
Bexley Con 180 £1.60 0.56
Loser
Blackpool UA Con 10 £3.16 0.56
Loser
Durham UA Lab 70 £2.62 0.57
Loser
Greenwich Lab 19 £3.99 0.58
Loser
Sutton LD 193 £1.67 0.58
Loser
North Tyneside Noc 124 £2.61 0.59
Loser
Bolton Noc 48 £2.84 0.61
Loser
Tameside Lab 34 £2.95 0.62
Loser
Kensington & Chelsea Con 98 £3.27 0.64
Loser
Haringey Lab 11 £4.32 0.65
Loser
Barnsley Lab 44 £3.09 0.66
Loser
Calderdale Noc 110 £3.60 0.66
Loser
Brent Lab 24 £3.92 0.67
Loser
Luton UA Lab 60 £3.22 0.68
Loser
Wigan Lab 85 £2.87 0.68
Loser
Nottingham UA Lab 17 £4.24 0.68
Loser
Walsall Con 35 £3.60 0.69
Loser
Darlington UA Lab 104 £2.75 0.69
Loser
Barking & Dagenham Lab 8 £4.29 0.70
Loser
Sheffield Noc 84 £3.74 0.72
Loser
Havering Con 177 £1.74 0.73
Loser
Wandsworth Con 102 £3.78 0.73
Loser
Newham Lab 2 £6.13 0.75
Loser
Hammersmith & Fulham Con 31 £5.10 0.76
Loser
Manchester Lab 4 £5.57 0.77
Loser
Plymouth UA Con 80 £3.36 0.77
Loser
Leicester UA Lab 22 £4.95 0.77
Loser
Northumberland UA Noc 144 £3.08 0.77
Loser
Southampton UA Con 72 £3.42 0.78
Loser
Burnley LD 21 £1.01 0.79
Loser
Isle of Wight UA Con 106 £3.35 0.80
Loser
Slough UA Lab 56 £3.88 0.82
Loser
Hyndburn Noc 40 £0.95 0.83
Loser
Kirklees Noc 95 £3.13 0.83
Loser
North Lincolnshire UA Lab 129 £3.16 0.85
Loser
Merton Noc 208 £2.75 0.86
Loser
Stoke-on-Trent UA Noc 18 £4.69 0.88
Loser
Wakefield Lab 77 £3.66 0.89
Loser
Coventry Lab 53 £4.52 0.90
Loser
Leeds Noc 97 £3.63 0.90
Loser
Telford & Wrekin UA Noc 105 £3.65 0.90
Loser
Westminster Con 75 £6.10 0.91
Loser
Lambeth Lab 14 £7.25 0.91
Loser
Trafford Con 190 £2.92 0.92
Loser
Derby UA Noc 108 £4.21 0.92
Loser
Chiltern Con 312 £0.41 0.94
Loser
Cornwall UA Noc 82 £3.65 0.95
Loser
Camden Lab 55 £7.11 0.99
Loser
Harrow Lab 184 £3.14 1.00

Herefordshire UA Con 145 £3.25 1.02
winner
Stockton-on-Tees UA Noc 137 £3.99 1.04
winner
Bradford Noc 33 £5.42 1.05
winner
Allerdale Noc 121 £1.11 1.06
winner
Hackney Lab 1 £11.11 1.07
winner
East Riding of Yorkshire UA Con 216 £3.11 1.10
winner
Bournemouth UA Con 96 £4.13 1.14
winner
Southwark Lab 25 £9.63 1.15
winner
Pendle Noc 41 £1.39 1.18
winner
Reading UA Noc 125 £4.55 1.19
winner
Warrington UA Noc 182 £3.44 1.21
winner
Medway UA Con 136 £4.02 1.25
winner
Bristol LD 93 £5.49 1.28
winner
West Berkshire UA Con 287 £2.74 1.29
winner
Redbridge Noc 116 £4.97 1.32
winner
Basildon Con 141 £1.12 1.35
winner
Kingston upon Thames LD 252 £3.22 1.36
winner
Richmond upon Thames Con 286 £3.43 1.39
winner
Bath & North East Somerset Noc 254 £3.38 1.46
winner
Peterborough UA Con 79 £6.62 1.47
winner
South Gloucestershire UA Noc 273 £3.33 1.48
winner
York UA Noc 244 £3.59 1.49
winner
Three Rivers LD 297 £0.95 1.50
winner
Bromley Con 217 £3.29 1.53
winner
Salford Lab 26 £9.35 1.54
winner
Hounslow Lab 92 £6.36 1.56
winner
Barnet Con 165 £4.47 1.58
winner
Stevenage Lab 158 £1.31 1.64
winner
Rutland UA Con 305 £3.39 1.69
winner
Poole UA Con 187 £3.74 1.71
winner
Chesterfield LD 91 £1.56 1.74
winner
Havant Con 107 £1.32 1.75
winner
Solihull Noc 212 £4.50 1.77
winner
Lancaster Noc 133 £1.95 1.83
winner
Wiltshire UA Con 245 £3.95 1.83
winner
Croydon Con 99 £6.46 1.85
winner
Adur Con 135 £1.28 1.87
winner
Tower Hamlets Lab 3 £19.08 1.94
winner
Bolsover Lab 43 £1.91 1.94
winner
Shropshire UA Con 166 £6.06 1.95
winner
Surrey Heath Con 324 £1.04 1.97
winner
Eden Noc 197 £1.63 1.97
winner
Ribble Valley Con 285 £1.26 1.99
winner
Bedford UA Noc 169 £6.64 2.05
winner
North Somerset UA Con 224 £5.46 2.08
winner
Oadby & Wigston LD 272 £1.59 2.10
winner
Richmondshire Noc 261 £1.02 2.17
winner
Guildford Con 300 £1.27 2.18
winner
North Warwickshire Con 172 £1.82 2.23
winner
Hillingdon Con 130 £7.33 2.23
winner
Nuneaton & Bedworth Noc 115 £1.71 2.25
winner
Rossendale Con 90 £1.92 2.26
winner
Waveney Con 112 £2.06 2.29
winner
Central Bedfordshire UA Con 278 £4.30 2.30
winner
Islington Lab 6 £19.78 2.33
winner
Barrow-in-Furness Noc 37 £2.77 2.33
winner
Cannock Chase Noc 123 £1.99 2.37
winner
West Lancashire Con 153 £1.96 2.44
winner
Eastbourne LD 68 £2.33 2.56
winner
Bracknell Forest UA Con 291 £5.78 2.57
winner
Hastings Lab 23 £2.75 2.59
winner
Mansfield IND 36 £2.60 2.61
winner
Boston IND 65 £3.07 2.67
winner
Tendring Noc 81 £2.32 2.68
winner
Swindon UA Con 201 £7.73 2.78
winner
North East Derbyshire Lab 176 £2.06 2.85
winner
Wokingham UA Con 325 £3.76 2.90
winner
Amber Valley Con 159 £2.09 2.93
winner
Milton Keynes UA Noc 211 £10.77 2.95
winner
Forest of Dean Con 164 £2.52 2.98
winner
Broxtowe Noc 219 £2.11 2.99
winner
Broadland Con 267 £1.85 3.01
winner
Tamworth Con 140 £2.59 3.10
winner
Blaby Con 293 £2.05 3.13
winner
Windsor & Maidenhead UA Con 303 £4.40 3.16
winner
South Ribble Con 207 £1.90 3.18
winner
Bassetlaw Con 86 £3.09 3.20
winner
Great Yarmouth Con 57 £3.52 3.29
winner
Rochford Con 299 £1.77 3.31
winner
Gravesham Con 143 £2.67 3.32
winner
Harrogate Con 283 £2.12 3.35
winner
Bromsgrove Con 280 £1.67 3.38
winner
Suffolk Coastal Con 257 £2.07 3.43
winner
Daventry Con 253 £2.55 3.51
winner
Staffordshire Moorlands Con 181 £2.73 3.54
winner
Epsom and Ewell IND 308 £1.90 3.54
winner
Stafford Con 239 £2.22 3.56
winner
Carlisle Noc 109 £2.90 3.59
winner
Redditch Con 131 £2.58 3.63
winner
Oxford Lab 111 £3.80 3.66
winner
West Somerset IND 45 £3.15 3.74
winner
Dover Con 122 £3.31 3.76
winner
Fenland Con 94 £3.83 3.78
winner
Kings Lynn & West Norfolk Con 120 £3.83 3.78
winner
Harlow Con 69 £3.72 3.79
winner
Warwick Noc 260 £2.61 3.87
winner
East Lindsey Noc 58 £4.48 3.91
winner
Welwyn Hatfield Con 238 £2.61 4.02
winner
Epping Forest #N/A 203 £2.96 4.14
winner
South Northamptonshire Con 323 £2.46 4.14
winner
Stratford-on-Avon Con 271 £2.27 4.19
winner
Dartford Con 168 £3.30 4.23
winner
North West Leicestershire Con 194 £3.02 4.27
winner
Wyre Forest Con 128 £3.30 4.29
winner
Weymouth & Portland Noc 88 £3.38 4.34
winner
Exeter Noc 139 £4.08 4.35
winner
Mid Devon Noc 155 £3.23 4.35
winner
Canterbury Con 163 £3.56 4.35
winner
Chelmsford Con 298 £2.32 4.37
winner
South Oxfordshire Con 307 £2.51 4.46
winner
Wellingborough Con 138 £3.97 4.54
winner
Chorley Con 173 £3.51 4.64
winner
New Forest Con 264 £2.87 4.74
winner
Newark & Sherwood Con 147 £4.20 4.80
winner
Christchurch Con 228 £2.46 4.85
winner
North Devon Con 126 £4.00 4.86
winner
Derbyshire Dales Con 232 £3.01 4.91
winner
Cheltenham LD 214 £3.28 4.94
winner
Mole Valley Noc 310 £2.15 4.94
winner
Worthing Con 162 £3.37 4.95
winner
South Staffordshire Con 247 £2.98 4.96
winner
East Dorset Con 304 £1.77 4.96
winner
South Holland Con 148 £4.99 4.97
winner
Hertsmere Con 222 £3.93 5.00
winner
Thanet Con 50 £4.79 5.00
winner
Dacorum Con 266 £2.90 5.05
winner
Gedling Con 196 £3.76 5.07
winner
Fareham Con 315 £2.56 5.10
winner
Torridge Noc 101 £4.75 5.13
winner
North Norfolk LD 118 £4.20 5.14
winner
Lewes LD 179 £2.73 5.15
winner
Shepway Con 89 £4.44 5.17
winner
Ashfield Noc 54 £4.61 5.21
winner
Breckland Con 174 £4.40 5.25
winner
Rushcliffe Con 318 £3.15 5.26
winner
Tunbridge Wells Con 246 £3.07 5.27
winner
Cherwell Con 240 £3.79 5.27
winner
St Edmundsbury Con 220 £3.21 5.29
winner
Erewash Con 150 £4.19 5.30
winner
East Devon Con 209 £2.84 5.41
winner
Ipswich Noc 87 £4.23 5.52
winner
West Dorset Con 170 £4.44 5.55
winner
Spelthorne Con 262 £3.24 5.56
winner
Castle Point Con 198 £3.56 5.60
winner
East Staffordshire Con 160 £4.25 5.60
winner
Norwich Noc 73 £6.48 5.71
winner
Lichfield Con 237 £3.35 5.71
winner
Lincoln Noc 62 £6.42 5.72
winner
Melton Con 249 £4.18 5.75
winner
Cotswold Con 263 £3.54 5.82
winner
Sevenoaks Con 279 £3.11 5.96
winner
Maldon Con 230 £3.75 5.97
winner
Hinckley & Bosworth LD 251 £4.16 6.07
winner
Newcastle upon Tyne LD 66 £1.73 6.11
winner
Wychavon Con 226 £3.77 6.12
winner
Teignbridge Noc 175 £4.24 6.14
winner
Ryedale Noc 200 £4.94 6.18
winner
Crawley Con 157 £6.00 6.26
winner
North Dorset Con 215 £4.06 6.36
winner
Northampton LD 127 £5.54 6.41
winner
Woking Noc 294 £4.23 6.45
winner
Kettering Con 186 £4.64 6.51
winner
Babergh Noc 233 £4.14 6.53
winner
Broxbourne Con 205 £4.10 6.53
winner
Wycombe Con 258 £3.77 6.54
winner
Stroud Con 255 £3.90 6.61
winner
Fylde Con 235 £4.36 6.63
winner
South Derbyshire Con 221 £5.04 6.66
winner
Brentwood Con 295 £4.40 6.72
winner
East Northamptonshire Con 229 £4.92 6.73
winner
Taunton Deane Noc 183 £4.33 6.79
winner
Braintree Con 210 £4.32 6.83
winner
Charnwood Con 234 £4.98 6.86
winner
Rushmoor Con 248 £5.23 6.91
winner
Arun Con 151 £4.16 6.94
winner
Hambleton Con 265 £4.45 6.94
winner
East Cambridgeshire Con 269 £5.69 7.05
winner
East Hertfordshire Con 313 £3.82 7.08
winner
St Albans LD 316 £3.59 7.09
winner
Watford LD 189 £6.52 7.19
winner
Waverley Con 320 £3.32 7.22
winner
Craven Con 241 £5.09 7.33
winner
South Hams Con 204 £4.43 7.34
winner
West Lindsey Con 171 £6.35 7.36
winner
Test Valley Con 289 £4.35 7.48
winner
Tandridge Con 284 £3.56 7.54
winner
Worcester Noc 156 £5.44 7.55
winner
West Oxfordshire Con 317 £4.19 7.59
winner
East Hampshire Con 302 £3.44 7.63
winner
Mid Sussex Con 314 £3.51 7.76
winner
North Kesteven Con 270 £5.80 7.76
winner
Eastleigh LD 281 £4.60 7.89
winner
Rother Con 132 £5.34 7.93
winner
South Somerset LD 202 £4.63 8.06
winner
Swale Con 100 £6.94 8.07
winner
Colchester Noc 206 £5.13 8.07
winner
Huntingdonshire  Con 276 £6.02 8.20
winner
Chichester Con 213 £4.26 8.24
winner
Reigate & Banstead Con 296 £3.90 8.25
winner
South Kesteven Con 242 £6.23 8.27
winner
Sedgemoor Con 154 £6.75 8.30
winner
Mendip Con 178 £5.64 8.35
winner
Vale of White Horse LD 306 £4.73 8.36
winner
Mid Suffolk Con 274 £5.42 8.46
winner
Horsham Con 301 £3.58 8.50
winner
Rugby Con 225 £5.91 8.52
winner
Cambridge LD 188 £8.17 8.57
winner
Wealden Con 250 £4.40 8.71
winner
Selby Con 236 £6.76 8.79
winner
Aylesbury Vale Con 288 £5.83 8.96
winner
Elmbridge Con 322 £4.14 9.05
winner
Corby Lab 51 £9.46 9.12
winner
Wyre Con 185 £2.91 9.20
winner
North Hertfordshire Con 282 £5.43 9.63
winner
West Devon Noc 149 £7.65 9.79
winner
Ashford Con 192 £6.60 10.05
winner
Runnymede Con 292 £6.59 10.07
winner
Malvern Hills  Con 223 £6.88 10.26
winner
Gloucester Noc 142 £8.55 10.74
winner
Winchester LD 309 £5.53 11.07
winner
South Norfolk Con 256 £8.09 11.75
winner
Harborough Con 319 £7.43 12.61
winner
Forest Heath Con 218 £11.27 12.85
winner
Tewkesbury Noc 275 £8.13 12.92
winner
Tonbridge & Malling Con 268 £6.98 13.75
winner
Maidstone Con 227 £7.61 14.28
winner
South Bucks Con 290 £6.64 14.53
winner
South Cambridgeshire Con 321 £7.65 14.95
winner
Basingstoke & Deane Con 277 £10.20 20.70
winner
Uttlesford Con 311 £12.45 23.10
winner