DCLG chiefs defend top-slicing New Homes Bonus

16 Oct 13
Senior figures in the Department for Communities and Local Government have defended the government’s decision to top-slice the New Homes Bonus, saying reforms will ‘tie in’ councils to Local Enterprise Partnerships’ plans.

By Richard Johnstone | 16 October 2013

Senior figures in the Department for Communities and Local Government have defended the government’s decision to top-slice the New Homes Bonus, saying reforms will ‘tie in’ councils to Local Enterprise Partnerships’ plans.

MPs on the Commons’ communities and local government committee questioned DCLG officials about the decision to take £400m from the New Homes Bonus and add it to the £2bn Single Local Growth Fund, which is open to bids from LEPs.

Permanent secretary Sir Bob Kerslake told MPs that the government’s response to a recent consultation on the plan would set out how the money would be top-sliced. The consultation, which closed in September, came after concerns were raised by councils about the impact of the reduction on their funding.

Kerslake insisted that the money ‘would not be lost’ to councils, as they could influence the proposals being developed by LEPs.

‘We have just held a consultation on this issue and heard the views from local authorities on the potential impact,’ he told the committee.

‘But it is important to say that this money isn’t lost to local authorities. What we’ve said is that it should be pooled and determined by the LEP, which includes representation from local authorities. This money remains in the local area to invest in local growth initiatives.’

Peter Schofield, DCLG’s director general for neighbourhoods, added: ‘One of the questions we’ve asked in the consultation is exactly how that should be done.’

It was vital that pooling worked in a way that enabled local authorities to achieve their growth objectives, he said.

‘The important thing is using the money in a way that helps to reinforce LEPs locally.

‘One of the positive effects of pooling will be that it really does bind in local authorities to the priorities that are developed through the strategic economic plans by LEPs, and we will be seeing some of that as they produce their economic plans over the coming months.’

The Single Local Growth Fund will also be structured in a way that would allow LEPs to respond to the growth priorities of member councils, Schofield said.

‘I think that aspect is quite a positive development.’

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top