New Homes Bonus is granted to councils in recognition of the
pressures they and their communities face when new housing is built in
their borough. For example, the cost of more people using locally
delivered services, such as adult care or libraries, or investment in
infrastructure.
The Autumn Statement announced that, from 2015, London boroughs will face a cut of £70 million in the New Homes Bonus. It also announced that outside of London the New Homes Bonus will not be given to Local Enterprise Panel (LEPs), as had been originally proposed, but would instead continue to go to the councils who deliver local services. The government has, however, decided that in London the New Homes Bonus will be given to the London Local Enterprise Panel, chaired by the Mayor of London.
Chair of London Councils, Mayor Jules Pipe, said:
The Autumn Statement announced that, from 2015, London boroughs will face a cut of £70 million in the New Homes Bonus. It also announced that outside of London the New Homes Bonus will not be given to Local Enterprise Panel (LEPs), as had been originally proposed, but would instead continue to go to the councils who deliver local services. The government has, however, decided that in London the New Homes Bonus will be given to the London Local Enterprise Panel, chaired by the Mayor of London.
Chair of London Councils, Mayor Jules Pipe, said:
All Londoners should be outraged by this move. If the New Homes Bonus is essential for councils in Leeds and Manchester to fund the pressures of growth, why should Londoners be any different? This must be reversed.
The very fact that it has been proposed raises fundamental questions about the governance of the growth agenda in London and the government’s commitment to it.
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