Tower Hamlets will receive a £17.6m bonus from the government for delivering on its commitment to create new homes including much needed affordable homes for residents.
The borough delivered 1,676 new affordable homes for the 12 month period to October 2020 which was the highest number in the country.
The national New Homes Bonus scheme was introduced to encourage local authorities to increase the number of new homes.
It is based on the amount of extra Council Tax revenue raised for new-build homes, conversions and long-term empty homes brought back into use. There is also an extra payment for providing affordable homes.
Under the scheme the government match the revenue raised from council tax payments from new-build homes, conversions or empty properties being brought back into use for a period of six years.
For the second year running Tower Hamlets was top of the list of councils in terms of revenue from new homes.
The Council receives a bonus payment of £17.6 million. This is over £8m more than the second highest recipient, Newham Council, which will receive £9.4m.
The money received can be invested into longer term capital projects or one off funding rather than in the day to day running of the council’s core budget. The council’s core budget has been reduced by £200m since 2010 and it has to make a further £30m of savings over the next 3 years due to government cuts and increased demand.
John Biggs, Mayor of Tower Hamlets, said: “We are committed to providing more homes and particularly affordable housing in the borough and this shows we have delivered the highest number of affordable homes in the country. The New Homes Bonus received will go into ensuring we can support the growth in population.”
Cllr Danny Hassell, Cabinet Member for Housing, said: “We work closely with our partners in development and with housing associations in addition to our own ambitious programme of new Council homes. While our preference is that the government does not cut our core grant we are working really hard to deliver the housing our residents need and the funding they require for services.”
For more information about this release contact the London Borough of Tower Hamlets communications team on 020 7364 4389 or email email@example.com
Posted on Wednesday 10th March 2021