Oral Answers to Questions

Heidi Alexander Excerpts

Monday 4th April 2011 Commons Chamber

[Richard Graham (Gloucester) (Con)]

10. What assessment he has made of the potential benefits to Gloucester of the new homes bonus.

[Heidi Alexander (Lewisham East) (Lab)]

13. What assessment he has made of the potential effect on regions in England of the new homes bonus.

[The Minister for Housing and Local Government (Grant Shapps)]

Today, I have announced the final allocations to local authorities under the new homes bonus for 2011-12. All parts of England will receive significant funding from the scheme. Kirklees will receive £1.3 million, Rugby £435,000 and Gloucester £782,000. The funding is completely un-ring-fenced and councils will be able to use it according to the wishes of their local communities.

--- Later in debate ---

[Grant Shapps]

One of the changes that we have made is to enable local authorities to set their own targets for brownfield sites. I have been to my hon. Friend’s constituency and I know that there are many good sites available. Rather than housing being built on sites where the regional spatial strategy seemed to insist that it went, housing can now go where it is required. Much of that will be on the brownfield land that I went to see. That is one of the features of the Government’s policy, and of the new homes bonus in particular.

[Heidi Alexander]

Last week the Minister for Housing and Local Government wrote to my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck) and claimed that the new homes bonus will not penalise deprived areas to favour more affluent ones. Can he explain to me why his figures differ so widely from those of the National Housing Federation, which estimates that the four northern regions of England will lose £104 million, whereas the five southern regions will gain £342 million?

[Grant Shapps]

It may have escaped the attention of Opposition Members that the new homes bonus rewards the authorities that build homes. That is why it is called the new homes bonus. Of the five areas that are building the most homes—the five top councils to receive the new homes bonus—three of them are in the midlands and the north.