Local Government Finance Settlement

Mark Pawsey Excerpts

Thursday 15th December 2016 Commons Chamber

[Sajid Javid]

Turning first to Nottinghamshire, the hon. Lady is right to highlight Nottingham as an example of an area that, through the precept, cannot raise as much as even some of its neighbouring areas. That is why the better care fund, which is already in place, takes account of the tax-raising powers that are available locally. Beyond the precept, the other allocation I have talked about today, the £240 million fund, will be based on need, which will mean a relative benefit for Nottingham. She might be interested to know that the precept alone is worth £12.5 million to Nottingham next year. On talks, I think I have made it clear that I am happy to talk to everyone. This is just such an important issue.

[Mark Pawsey (Rugby) (Con)]

The new homes bonus has become an important source of funding for councils with a positive attitude to development, such as Rugby Borough Council. I welcome the additional incentives the Secretary of State has provided today, especially in respect of consents granted on appeal where there is an up-to-date local plan. Will he reassure councils like Rugby that they will continue to be able to generate funds from the new homes bonus to provide valuable infrastructure, which is often needed to respond to local concerns about development?

[Sajid Javid]

I am more than happy to provide that reassurance. My hon. Friend makes an important connection between the new homes bonus and the need to ensure that there are enough local services, especially infrastructure, to deal with more people living in the area. The new homes bonus helps with that. He might be interested to note the Chancellor’s announcement in the autumn statement of the new £2.3 billion housing infrastructure fund, which is designed to help with those pressures. I look forward to discussing that with him.