Local Government Finance Settlement

Peter Heaton-Jones Excerpts

Thursday 15th December 2016 Commons Chamber

[Sajid Javid]

I think the hon. Lady was referring to the Dilnot reforms that were recommended. She said that they are not happening or that they have been cancelled. She will know that we are delaying them because we are listening to local authorities, many of which have asked for a delay. I know she will agree that when we carry out such a big long-term reform, it is very important to get it right. She also talked about the need for more integration and co-operation with the Department of Health and others. In my statement, I referred to the fact that my Department and the Department of Health, which are already working closely together, will be assisting on a new framework to convince us that local councils are taking integration seriously as they utilise the new flexibility.

[Peter Heaton-Jones (North Devon) (Con)]

I welcome the Secretary of State’s statement and all the work the Government are doing to encourage the building of new homes. When considering changes to the new homes bonus, I ask him to bear it carefully in mind, as I am sure he will, that it is an important source of income for smaller local authorities like mine in North Devon and that the triggering of the new homes bonus is tied to the delivery of new homes, which is not always totally in the gift of the local authority, because of issues such as the availability of land and, frankly, the willingness of developers to build out. Will he work with me and North Devon Council to consider that carefully so that we get the balance right?

[Sajid Javid]

My hon. Friend makes an important point. I agree with him on the importance of the new homes bonus. As the name suggests, it is a bonus and not something that councils should rely on for day-to-day spending. That is why we do not include it in our core spending power calculations. Nevertheless, it is important, not least to meet the added pressures brought by the homes. He also talked about ensuring that the incentives are working properly, including in Devon, and I am happy to discuss that with him further.