Councils will be offered extra cash for every new home they allow to be built in their areas under a scheme designed to ease housing shortages. Under the New Homes Bonus, the Government will match the council tax raised on each new dwelling. Communities will be able to use their reward for going for growth on whatever they wish locally, such as council tax discounts for residents or facilities like playgrounds. Housing minister Grant Shapps said: "We will not tell communities how or where to build. But the New Homes Bonus will ensure that those communities that go for growth reap the benefits of development, not just the costs.’ The Minister confirmed that councils who take action now to give planning consent and support the construction of new homes where they are needed and wanted will receive direct and substantial benefit for their actions. Shadow housing minister John Healey said: "Not content with misleading the public about a 'black hole' in funding for housing, this Government is now set on conning councils with a home builders 'bonus'. "The cost will run into billions, met mainly - as Tory proposals indicated before the election - by existing grants to local councils. Read more on the CLG website.
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