Housing – Parliamentary Written Answer

Dr Thérèse Coffey: To ask the Secretary of State for Communities and Local Government with reference to the introduction of the Single Local Growth Fund, how the New Homes Bonus will be allocated between (a) local enterprise partnerships, (b) county councils and (c) district councils, by proportion.

Mr Prisk: Local authorities have a crucial role to play in supporting housing and wider economic growth, but the local government finance system historically failed to reward housing and other growth. The coalition Government has put in place structural reforms to change the incentives for local authorities. From April 2013, local authorities in England are retaining half of the business rates that are raised locally, and the New Homes Bonus also provides funding for local authorities based on the homes that are built in their area. As announced in ‘Investing in Britain's future’ (Cm 8669, June 2013), we intend that in 2015-16 £400 million from the New Homes Bonus will be pooled within local enterprise partnership areas to support strategic, locally-led housing and economic development priorities.