Saturday, 28 November 2015

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New Homes Bonus will give Carlisle council £1m

Carlisle is set to benefit from more than £1,000,000 in Government funding from the New Homes Bonus.

Les Tickner photo
Les Tickner

The bonus is based on the council tax of additional homes and those brought back into use.

New figures reveal that Carlisle City Council will be allocated a total of £1,040,657 while Cumbria County Council will benefit from £582,407.

Councillor Les Tickner – the city council’s portfolio holder for finance, governance and resources – said new housing provision in Carlisle and the surrounding area was high on the Labour Group’s agenda and any incentive to accelerate that growth was of course welcomed.

He added: “However, growth in housing must go hand in hand with economic growth and this is something we will be addressing in the local plan.

“The New Homes Bonus is, however, not new money for councils. It is being funded by top slicing the core revenue grants awarded to councils each year and will ultimately impact on each council’s ability to fund core services. Crucially though, it is being allocated as a Section 31 grant which means it is not ring fenced thus enabling councils to use it as capital or revenue or to top up reserves.”

John Stevenson, Carlisle’s MP, welcomed the news and added that the bonus had provided generous rewards to both Carlisle City and Cumbria County councils. He said: “The New Homes Bonus provides councils with an incentive to create growth and the Government is right to reward councils who encourage and are supportive of growth in their area.

“Providing the right types of housing is very important in Carlisle and this money is recognition that steps are being taken by the local authorities to grow Carlisle by giving their consent for more housing developments.

“This will hopefully provide individuals and families with a better choice of housing in the city, to best suit their particular needs.”

The bonus includes a premium for affordable homes and is paid for six years.

Mr Stevenson said that the bonus ensured that those local authorities that promoted growth could share in the economic benefits, building communities in which people want to live and work.

It is awarded by Department for Communities and Local Government and since it began in 2011 funding has totalled £1.3bn.

The money recognises the delivery of more than 400,000 homes as well as more than 55,000 properties being renovated and brought back into use.

Cumbria County Council’s allocated total of £582,407 will be made up of:

  • A year one instalment of £149,199
  • A year two instalment of £172,728
  • A year three instalment of £260,479.

Carlisle City Council’s allocated total of £1,040,657 will be made up of:

  • A year one instalment of £243,452
  • A year two instalment of £408,477
  • £388,728 for year three.


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