The Government has announced that Cheshire East Council is due to receive a £5.3 million bonus next year for enabling 944 new homes to be built between October 2012 and October 2013.
The allocation for 2014/15 means Cheshire East will have received £12.9 million through the New Homes Bonus since it was set up in 2011/12, for helping to provide 2,549 newly-built homes and conversions, and bringing 1,236 empty homes back into use. These figures also include 699 affordable homes.
The New Homes Bonus is a grant paid by central government to local councils for increasing the number of homes and their use. It is paid each year for 6 years and based on the amount of extra Council Tax revenue raised for new-build homes, conversions and long-term empty homes brought back into use. There is also an extra payment for providing affordable homes.
Across England, councils have received over £2 billion through the New Homes Bonus since it was set up in 2011/12 for helping to provide 550,000 more homes and bringing 93,000 empty homes back into use. This total includes over 160,000 affordable homes.
Housing Minister Kris Hopkins said: "Top-down Regional Strategies and eco-towns failed hardworking families who aspired to own their own home, and built nothing but resentment.
"In stark contrast, councils have received over £2 billion for their part in getting Britain building, and leading to housing construction reaching its highest levels for seven years.
"And they are free to spend the money any way they like to benefit their local communities – whether that's supporting frontline services, providing new facilities or freezing council tax."
A spokesperson for Cheshire East Council said: "Cheshire East Council welcomes this funding which recognises the contribution we are making to delivering new homes and improving the housing stock.
"However, this Council is robustly not about building housing homes 'at all cost'. We are committed to protecting our green belt and green gaps throughout the Borough and have a clear 'brownfield first' policy for development.
"This news homes bonus money will be ploughed back into the area for the benefit of the local community.
"At a time when some developers are claiming the Council is not pulling its weight in terms of housing provision, it is gratifying to receive this bonus, which demonstrates that the Government supports the clear efforts we have made to boost sustainable local housing in appropriate locations that meet the needs of the people of Cheshire East."
Comments
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As well as all these new homes is there a 'bonus' for new schools, Doctors/dentist places. These things are as important as endless houses.
I thought it was an extra year of Council Tax, for a maximum of 6 years. IE if 944 houses are built, the Council collects the Council Tax - but - it gets a bonus year of the Band of Council Tax.
This £5.3m bonus therefore is not for one year, it is for the 944, plus the previously built houses. Next year will be £5.3m plus next year's figure times the Council Tax.
The other MAJOR incentive is the change in Council grant. Previously, if a Council built houses and added, say, £1m in Council Tax, that £1m was lost because the Central Govt grant was reduced by £1m. Big disincentive to build. George Osborne has shifted the rewards to those Councils who actually want to attract new residents.