Local Government Finance Settlement

Tom Pursglove Excerpts

Thursday 15th December 2016 Commons Chamber

[Sajid Javid]

I can tell the hon. Lady that for her local council, Redcar and Cleveland, the precept next year could raise £2.2 million, and the following year it could raise £3.4 million. The numbers are considerably higher than she may think at the moment.

On the new homes bonus, let me be clear: it is being reformed, but it is staying in place. The bonus that is currently equivalent to six years’ band D council tax will fall gradually from five years to four years, but the essential principles remain the same. The savings that are generated from that change from six years to four years are national savings—that is the £240 million pot—and will be distributed nationally across authorities that provide social care services. That will be based on a needs formula.

[Tom Pursglove (Corby) (Con)]

Both Corby Borough Council and East Northamptonshire Council are firmly engaging with the Government’s housing growth agenda. Will my right hon. Friend undertake to consult them fully on any proposed changes to the new homes bonus, because it is essential that infrastructure and services keep up with the pace of housing growth? I particularly say that because the level of development is so significant in our area and because it is focused on urban extensions, and the costs associated with those are inevitably high.

[Sajid Javid]

Again, my hon. Friend highlights the importance of the new homes bonus to meet some of those additional pressures. By having the reform, we have made sure that we keep the principle of helping those authorities that are doing the right thing and building those homes. My hon. Friend asked me specifically about consulting on the changes. I should point out that the consultation has happened: it started in December 2015 and is now complete. However, I said that there was a potential new change, which concerns whether the new homes bonus should be available if planning permission is granted on appeal, and we will consult on that.