Housing: Construction – Parliamentary Written Answer

Peter Luff: To ask the Secretary of State for Communities and Local Government what assessment he has made of the effectiveness of the New Homes Bonus in incentivising communities to accept developments; and if he will make a statement.

Mr Prisk: The New Homes Bonus is a powerful, simple, transparent and permanent incentive for local authorities and communities to increase their aspirations for housing growth. Since its inception the New Homes Bonus has totalled nearly £1.3 billion. As New Homes Bonus is an un-ringfenced grant, local authorities decide how to spend the Bonus, since we believe they are in the best position to make decisions about local priorities. As set out in the published Impact Assessment of the scheme, the Government is committed to the success of the New Homes Bonus. We will formally consider the impact of the scheme in 2013-14.