Fiona Mactaggart
Main Page: Fiona Mactaggart (Labour - Slough)
Grant Shapps
The new homes bonus is available for local authorities to spend as they see fit. Under the localism Bill and the flexibility that we now provide, it is absolutely possible for local authorities to use that money potentially even to borrow against, because the income stream is guaranteed for six years. It is a simple, very straightforward approach to making sure that people get more money to their area. To give Members an indication of the calculator, I should say that for every 100 homes that are built in any given area £1 million is likely to go to it over the six-year period.
Mr Speaker
Specifically on Milton Keynes, the hon. Member for Slough (Fiona Mactaggart)?
Fiona Mactaggart
Milton Keynes and Slough are both in the same region, and they both face similar issues, because the homes in their areas are more likely to be in a lower council tax band than the homes in neighbouring areas. Is it fair that those neighbouring areas, which build bigger, richer houses, will get more money than places such as Milton Keynes and Slough, which have more band D places?
Grant Shapps
We can usefully draw out a couple of points from the consultation that is before the House. First, we have set the banding equally throughout the country, so a band D home represents the average band D home throughout the country. Secondly, bigger homes obviously take up more space, so people will get less money because they cannot build as many. Thirdly, the hon. Lady will be interested to know that we have over-compensated for affordable house building, ensuring that every single affordable home that is built will get more than £350 in additional money. That represents a figure of more than 125% for every affordable home built. We should get more built—