Housing: New Homes Bonus

Lord Bates Excerpts

Tuesday 29th January 2013 Lords Chamber

[Baroness Hanham]

My Lords, I think that they are all more than aware. The new homes bonus has been an extremely important contribution to ensure that councils willingly accept new housing in their areas. This supports them, at least in terms of the housing provided, and gives them an incentive to ensure that new homes are built.

[Lord Bates]

Is my noble friend aware that in the north-east of England, the North Tyneside Council has used the new homes bonus to undertake a welcome £3.1 million refurbishment of a public library in North Shields? That is welcome, but is not the point of the new homes bonus to act as a catalyst for the construction industry? Will she therefore join me in welcoming the news that in the north-east of England new housing starts increased by 25% over the previous period last year, which is an increase of 47% over the period in 2009?

[Baroness Hanham]

My Lords, I am always grateful to my noble friend, because he knows the figures, and he has given them on several occasions. They show that the north-east is in fact working very hard to produce new housing. Of course, he is right: the new homes bonus is not specifically given for housing; it is given as a contribution to areas where new housing has been built. Refurbishing a new library to help with the increased population seems to me to be a perfectly acceptable use of that money.