Tuesday, 11 December 2012

Hyndburn's New Homes Bonus just £5,320 out of £199 million distributed nationally

I have raised the issue of the unfairness of this issue in the commons previously; How the New Homes Bonus is designed to take money from local councils in huge cuts and then redistribute it to southern councils.

Hyndburns New Homes Bonus is just £5,320 this year. Bottom - last - in the league table on funding. No 352 out of 352 local authorities. Rossendale are 7th from bottom with £73,085 and I would be interested to hear my colleague's Jake Berry MPs' explantion for this given his support

The amount Hyndburn and Rossendale are being given is a paltry amount considering £232m is being handed out.

The reality is local Councils do not build houses. House builders meeting unet demand provides incentives for house builders.

The reality is that services in Rossendale and Hyndburn will have to be cut deeper than anywhere else. Fairer funding would allow the building of a new swimming pool in Haslingden.

It is disgraceful that this Tory-led government is targeting Labour areas, targeting poor areas where they kinow they won't have to pay out grants. Areas where the housing market has collapsed and house building is put on hold. The Tories know that Borough's like Hyndburn do not have huge housing demand. The New Hones Bonus is a scheme designed to inflict more austerity and pain whilst rewarding wealthy leafy Tory Boroughs.

Surrey County Council which as a shire authority only receives 20% NHB is getting £2,825,000 million.Central; Bedforshire is getting £2,082,087 and Aylesbury Vale £1,553,233.

LINK ... League table of New Homes Bonus here.

Local Conservatives should be ashamed of their own governments policies and their impact on places like Hyndburn. 

Below is the letter from the minster.

Mr Graham Jones MP
House of Commons

Dear Graham


I am writing to announce the third allocations of New Homes Bonus for Hyndburn Council. These allocations are provisional, to allow local authorities to check the data used in the calculation. The allocations will total £661million for English local authorities - £199million for the third year 1 instalments, £232million for the second year 2 instalments, and £230million for this year, bringing the total amount of funding awarded under the New Homes Bonus to almost £1.3billion.

The New Homes Bonus is a powerful, simple and transparent incentive for housing growth. It is a key part of the housing growth focus of our national housing strategy. The Bonus is based on the council tax of additional homes and those brought back into use, with a premium for affordable homes and paid for six years. It ensures that those local authorities which promote and welcome growth can share in the economic benefits, and build the communities in which people want to live and work.

The New Homes Bonus provisional allocation for Hyndburn Council will total £120,633. This includes the third year 1 instalment of £62,942 the second year 2 instalment of £52,371, and £5,320 to be paid in 2013-14. This year 3 instalment will be paid for 6 years. It includes an affordable homes premium of £5,320. All provisional allocations can be found at https://www.gov.uk/government/policies/increasing-the-number-of-availablehomes/ supporting-pages/new-homes-bonus

The New Homes Bonus demonstrates the Government’s commitment to ensure that those local authorities which are growing have the funding to ensure that local services and facilities can meet the aspirations of new and existing residents. Ministers are committed to ensuring it remains a flexible, unring-fenced fund. Local authorities are best place to understand the barriers to growth in their areas and the needs of local communities. Mark Prisk MP Minister for Housing Department for Communities and Local Government Eland House Bressenden Place London SW1E 5DU Tel: 0303 444 3460 E-Mail: mark.prisk@communities.gsi.gov.uk www.gov.uk/dclg 10 December 2012

There are already good examples of authorities using the Bonus in a variety of ways. Some of these are included in the new Bonus Bulletin (which can also be found via the link above), which shows how the Bonus can be used to promote growth. Ministers want to see all local authorities leading a mature and transparent debate about the benefits that growth can bring.

I am writing in similar terms to local authority Leaders. Local authorities have up until 7 January to make representations on their provisional allocations before final allocations are confirmed later in the New Year. Local authorities’ Chief Executives have also been notified.