Shapps promises councils "direct and substantial benefit" under New Homes Bonus

The government’s New Homes Bonus scheme will be introduced early in the spending review period, the Housing Minister has announced.

Councils that “take action now to give planning consent and support the construction of new homes where they are needed and wanted will receive direct and substantial benefit for their actions,” the Department for Communities and Local Government said.

Grant Shapps called on local authorities to hold an “honest and direct” debate with communities about the benefits of building new homes in their area – “how they can reap the benefits of development and not just the costs”.

In a letter to councils, the minister also said the government was pressing ahead with reforms to business rates and the Community Infrastructure Levy.

Shapps claimed the changes would make the planning system “much faster and more responsive”.

He said: “We will no tell communities how or where to build, or how they should grow. But the New Homes Bonus will ensure that those communities that go for growth reap the benefits of development, not just the costs.”

Shapps added: “With housebuilding falling to its lowest level since 1924, action is needed now to build the homes the country needs. That’s why these new powerful incentives to build will be introduced early in the spending review period. And it’s why I have confirmed that those councils who go for growth by providing planning permission now will reap the rewards.”

A consultation paper on the scheme will be published following the spending review.