Oral Answers to Questions

Debate between Grant Shapps and Baroness Morgan of Cotes

Monday 28th February 2011 Commons Chamber

[Nicky Morgan (Loughborough) (Con)]

13. What estimate he has made of the level of funding from the new homes bonus which will be allocated to Charnwood borough council.

[The Minister for Housing and Local Government (Grant Shapps)]

A provisional allocation was made to Charnwood borough council the week before last, which I announced, of £644,387 under the new homes bonus.

[Nicky Morgan]

I thank the Minister very much for his reply. There is a real need for affordable and family-sized housing in my constituency and on the part of Charnwood borough council. How is the new homes bonus going to help councils to provide such housing?

[Grant Shapps]

The great thing with the new homes bonus is that it is a lot more flexible regarding the type of housing required. It will pay more where the homes are family-sized and therefore attract a higher council tax band; but in addition—I am sure that Opposition Members will welcome this—every affordable home built will receive a flat addition of £350 per year, the equivalent to about a third extra over and above the new homes bonus on other houses.