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Tower Hamlets is biggest beneficiary of New Homes Bonus scheme

by on April 23, 2015

East London local authority Tower Hamlets was the biggest beneficiary of the Coalition’s New Homes Bonus scheme over the past five years.

It was paid £74.7m according to figures just released by the Department for Communities and Local Government (DCLG).

Birmingham City Council came second with £53.7m while Cornwall Unitary Authority (UA) came third, with just under £45.4m.

Local authorities from the capital filled 20 of the top 50 slots. Local authorities from the North and the Midlands were sparingly represented in the top 50 group. Only Barnsley, Bradford, Cheshire East, Coventry, Durham UA, East Riding of Yorkshire UA, Kirklees, Leeds, Leicester, Manchester, Nottingham Salford, Sheffield and Wakefield clocked up allocations of over £15m during the scheme’s lifetime.

The Government bankrolled the scheme to the tune of nearly £3.4bn. DCLG calculated that the scheme rewarded delivery of 700,000 net additional dwellings and over 100,000 long-term empty homes, which were brought back into use.

DCLG’s assessment of the scheme concluded that shire districts were the highest net beneficiaries while more negative impacts were found in the north of England, Yorkshire and the Humber.

The department found no evidence that the initiative “was providing an additional incentive in increasing support specifically for more affordable homes”.

View details of the New Homes Bonus scheme and download the statistics

Roger Milne

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