The government's spending review decision to top-slice the
new homes bonus in order to provide £400m of the £2bn 2015-16 local growth fund
for which Local Enterprise Partnerships (LEPs) are expected to bid has been met
with dismay, suspicion and hostility from local authorities. Funded significantly through the local
authority formula grant, the new homes bonus is designed to encourage provision
at a time when new home building is experiencing the lowest rates of
deliverability (and the highest levels of demand) since the second world war.
The £400m amounts to 35% of the total forecast new homes bonus pot for the
year. The government have issued a technical consultation with a closing date
of 19 September on how this decision can be put into effect. Read more on the
Guardian website.
