Laura Sharman 18 September 2018

Districts call for new homes bonus threshold to be scrapped

The New Homes Bonus (NHB) baseline is punishing district councils for delivering more homes and should be scrapped, according to calls today.

The District Councils’ Network (DCN) said plans to increase the baseline are a ‘perverse’ incentive and would reduce the rewards for communities to accept new homes.

It warned that the introduction of the 0.4% baseline threshold had already removed more than £70m in funding from district councils in 2017/18.

In its response to the 2019/20 Local Government Finance Settlement Technical Consultation, the DCN is also calling for a 3% prevention precept. It argues the precept could raise an extra £42m to help reduce demand for NHS and acute social care services.

Cllr Sharon Taylor, DCN member board lead for sustainable finance, said: ‘New Homes Bonus has been a powerful driver for housing growth, but increasing the baseline would be a perverse incentive because it would penalise the very councils which have succeeded in meeting Government’s housing targets. We are against the proposal to increase the baseline, which instead should be scrapped.

‘It is paramount for districts to be given more financial flexibilities that will help them not only to deliver on both their prevention role, but also further succeed in delivering new homes to tackle the housing crisis, providing homes people desperately need.’

Making payment processes smarter  image

Making payment processes smarter

It can be challenging to find the right software to streamline payment processes. Lewis McKenna-Crisp argues SmarterPay has the ideal solution for councils.
SIGN UP
For your free daily news bulletin
Highways jobs

Director of Public Health

Royal Borough of Greenwich
Up to £131,210
The Public Health department is at the heart of the council’s business. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Regeneration and Growth

Plymouth City Council
£68,387 - £74,411 (MFS and relocation available, pay award pending)
This is a unique opportunity to lead our award-winning development team and directly deliver hundreds of millions of pounds of projects. Plymouth, Devon
Recuriter: Plymouth City Council

Director of Adult Social Care

Wiltshire Council
£119,390 - £127,137
Join us as the Director of Adult Social Care and make a real difference to people’s lives. Wiltshire
Recuriter: Wiltshire Council

Assistant Director Planning, Performance & Engagement

East Sussex County Council
up to £97,700
With strong local communities, unspoilt countryside and vibrant coastal towns, East Sussex offers an exceptional quality of life to many. East Sussex
Recuriter: East Sussex County Council

Director of Finance & Commerce

Lancashire County Council
Up to £114,339
You will play a critical role in driving the organisation through complex change and innovation. Lancashire
Recuriter: Lancashire County Council
Linkedin Banner