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.’

SIGN UP
For your free daily news bulletin
Highways jobs

SEN Business Support Co-ordinator

Wakefield Council
£17,706.00 - £19,110.00, Grade 8, 18.5 hours, Permanent
Wakefield Council is looking for a SEN Business Support Co‑ordinator Wakefield, West Yorkshire
Recuriter: Wakefield Council

Cleaner Caretaker

North Yorkshire Council
£12.85 - £13.47 per hour (As of 1st April 2026)
Are you looking for a part time cleaning role? York, North Yorkshire
Recuriter: North Yorkshire Council

Future Finance Leaders Trainee Accountant Programme

North Yorkshire Council
£27,254 - £42,839
Are you looking for a full-time position which offers you a rewarding and challenging opportunity? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Supervisor WMF2784e

Westmorland and Furness Council
£38,220 - £39,152 (pro rata)
This is a fantastic opportunity for those looking for the next step in their Care career Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Lead Lawyer - Planing & Highways WMF2783e

Westmorland and Furness Council
£51,356 - £52,413
Westmorland and Furness Council will be an ambitious authority that will shape public services for the better Cumbria / Various
Recuriter: Westmorland and Furness Council
Linkedin Banner