Bonus payment is boost for housing
Reporter: Lewis Jones
Date published: 06 April 2011
A WINDFALL of £257,780 — £63,000 more than expected — is heading to Oldham as part of the New Homes Bonus scheme.
The scheme sees the Government match the council tax raised from the building of affordable new homes, and empty properties being brought back into action, in annual payments to councils.
Figures from the first year of the scheme are based on 107 new homes and 44 empty homes being occupied in the borough from October, 2009, to October, 2010.
Based on such figures, more than £1.5 million could be passed to Oldham throughout the scheme over the next six years.
Housing Minister Grant Shapps has now written to councils urging them to discuss with residents how the money will be spent.
He said: “This country needs more homes, so we need the nation to start building again — but this time with the backing of local communities rather than in the teeth of their opposition.
“But this funding from Government is only the start of the process. It is now essential that councils engage with their local community to decide how the money is spent, so residents feel the direct benefits of growth, rather than extra pressure on local services.”
Residents could opt for council tax discounts or back the council boosting their provision of facilities such as skate parks and swimming pools.
The first cash payments will see 326 authorities receive a share of £200 million.
Greater Manchester councils alone will be handed £8.7 million as part of the project that aims to reverse falling levels of house building.