Devolve Funding To Increase Building And Job Creation

£23bn of growth funding is spread out across 70 funding streams managed by 22 government departments and agencies. Councils warn this is creating a maze of complexity that is hurting the economy by creating significant delays in delivering projects and generating frustration.

Research shows that:

·         In most areas over 63% of the funding streams have little or no connection to local efforts to drive growth and create jobs

·         Areas with devolved deals fare better with influence or control over 47% of funds

·         Each fund comes with its own objectives, timetables and rules. Local leaders, working with business leaders are best placed in understanding the needs of their local economies and creating the conditions for jobs and future prosperity.

Read more on the LGA website.

New Homes Bonus or No Homes Bonus?

When we first heard Whitehall’s aspirations for the New Homes Bonus (NHB) in 2010 CCN supported its initial promises around new homes and local growth. But under new proposals local government could lose money for every new home built. We can’t let the New Homes Bonus become a No Homes Bonus! Initially, the scheme came with a six year guarantee to provide investment in local services following the building of new homes. We need this resource to support the creation of the jobs and growth new communities need while maintaining local services. We therefore were shocked when Whitehall announced that a significant proportion of NHB allocation would actually be pooled into the Single Local Growth Funds, money that councils cannot access independently. One option even intends to entirely remove the allocation for county councils. Read more on the Conservative Home website.

Report Faults HCA Funding Allocation

A new Smith Institute report shows that East Midlands is getting a raw deal with government unfairly cutting housing and growth money. Although over 10% of England’s population live in the East Midlands it only receives 4% of government funds for housing and regeneration. This is exacerbating the region’s housing crisis and ignoring the contribution the East Midland’s could make to creating jobs and rebalancing the economy.  Download a copy of the report from the Smith Institute website.

Multi-Million Fund For Vulnerable Likely To Be Scrapped

A £190m fund which provides hard-up families with free debt advice, low cost loans and access to bank accounts is likely to be scrapped this year as the government continues its radical public spending cuts. Ministers have failed to offer any reassurances that various financial initiatives to help low-income households, such as The Financial Inclusion Fund, The Growth Fund and Saving Gateway, will be continued beyond the end of March. These schemes have provided thousands of families with easy access to affordable credit and financial help, encouraging people to develop sensible money-handling skills and saving habits. The NHF fears that the axing of these funds will have a widespread impact and could ultimately leave many people across the country at risk of falling into the hands of predatory loan sharks and deepening levels of debt. Read more on the NHF website.