Lancashire TelegraphEast Lancashire's housing outrage (From Lancashire Telegraph)

When news happens, text LT and your photos and videos to 80360. Or contact us by email or phone.

East Lancashire's housing outrage

Lancashire Telegraph: ‘DISGRACE’ East Lancashire councils have received some of the lowest amounts in the UK under the government’s New Homes Bonus scheme ‘DISGRACE’ East Lancashire councils have received some of the lowest amounts in the UK under the government’s New Homes Bonus scheme

‘PALTRY’ amounts as low as £5,000 have been awarded to East Lancashire councils from a national pot of £200million.

East Lancashire councils have received some of the lowest amounts in the UK under the government’s New Homes Bonus scheme.

The scheme rewards councils where a lot of building development has taken place, with between £5m and £1m handed out to numerous councils in the UK.

Hyndburn is at the very bottom of the league, with just £5,320 awarded as it falls below the Isles of Scilly in terms of new development.

Other East Lancashire councils also received some of the lowest amounts on the list after a low period in rates of house building.

Chorley Council is to be awarded £739,008, Burnley £240,208, Pendle £179,420, Ribble Valley £170,723, Rossendale £73,085, and Blackburn with Darwen £58,272.

In contrast, Tower Hamlets, in London, will receive £5.9m, Hackney £4.4m, Islington £3.5m, and Cornwall £3.4m.

Hyndburn MP Graham Jones has slammed the amounts as ‘paltry’. He said: “The New Homes Bonus is taking money from local councils in huge cuts and then redistributing it to southern councils. The real-ity is local councils do not build houses.

“It is disgraceful that this government is targeting poor areas, where they know they won’t have to pay out grants. They know that boroughs like ours do not have huge housing demand.”

Just two years ago, East Lancashire councils were accustomed to seeing millions every year through Elevate housing market renewal funding. When axed in 2010, the scheme had seen £317m spent since 2003 on 7,500 homes in East Lancashire.

At its height in 2008, Blackburn with Darwen was given £12.6m, Burnley £14.4m, Hyndburn £8.6m, Pendle £10.6m, and Rossendale £2.6m.

Burnley MP Gordon Birt-wistle said he felt the new scheme encouraged more house building. He added: “Of course, there is less devel-opment in Pennine Lanc-ashire, so they won’t receive the same amounts. But we have been awarded more in Burnley this year than last year because development has been taking place. That development should improve year on year.

“The old housing schemes encouraged demolition, this encourages rebuilding.”

Blackburn Council deputy leader Andy Kay said the scheme was designed with politics in mind. He said: “It’s fair if, by fair, you mean the amounts are being awar-ded per the number of new homes built. Whether that is a fair criteria is another question. Realistically it is simply seeing more wealth flooded into areas that are already doing well.”

The New Homes Bonus is paid each year for six years and is based on the amount of extra council tax revenue raised by new build homes and houses brought back into use.

Hyndburn Council deputy leader Clare Pritchard said: “It just isn’t good enough. A ‘one size fits all’ policy like this just does not work in the north of England and is redistributing everything to the south.”

This year the government is paying £229.5m, in respect of 155,000 new homes, made up of 142,000 new build prop- erties, and 13,000 long-term empty properties brought back into use. The allocat-ions include £20.3m for prov- iding 58,000 affordable homes.

Comments (6)

Please log in to enable comment sorting

4:37pm Thu 13 Dec 12

2 for 5p says...

Ooh what's wrong is £5000 not enough for you to salt away :-)
Ooh what's wrong is £5000 not enough for you to salt away :-) 2 for 5p
  • Score: 0

4:59pm Thu 13 Dec 12

Begbie says...

Tory war against the North West continues. No suprise. Was the same last time they were in and it will be the same this time.
Tory war against the North West continues. No suprise. Was the same last time they were in and it will be the same this time. Begbie
  • Score: 0

5:38pm Thu 13 Dec 12

fabinribblevalley says...

The north /south divide lives on, the only time they are interested in the north is when the southern industrialist start a war. Time we joined Scotland and went for independence
The north /south divide lives on, the only time they are interested in the north is when the southern industrialist start a war. Time we joined Scotland and went for independence fabinribblevalley
  • Score: 0

5:52pm Thu 13 Dec 12

mavrick says...

I hope the people that voted for the coalition are happy. If I was Hyndburn council. I would send it back and tell them to give it to a struggling southern council as £5000 is a bigger insult than saying Tony Blair was a labour man.
I hope the people that voted for the coalition are happy. If I was Hyndburn council. I would send it back and tell them to give it to a struggling southern council as £5000 is a bigger insult than saying Tony Blair was a labour man. mavrick
  • Score: 0

8:41am Fri 14 Dec 12

Wishingwell says...

2 for 5p wrote:
Ooh what's wrong is £5000 not enough for you to salt away :-)
Your absolutely spot on with that. Between both the local authorities and the elevate scheme they have done nothing but give out something for nothing and undermine private business in East Lanc's and now they seem surprised that tax revenues are falling Lol.
If maverick wants to give the 5g it back it would be even better!
[quote][p][bold]2 for 5p[/bold] wrote: Ooh what's wrong is £5000 not enough for you to salt away :-)[/p][/quote]Your absolutely spot on with that. Between both the local authorities and the elevate scheme they have done nothing but give out something for nothing and undermine private business in East Lanc's and now they seem surprised that tax revenues are falling Lol. If maverick wants to give the 5g it back it would be even better! Wishingwell
  • Score: 0

5:29pm Fri 14 Dec 12

Real Lancs Assembly says...

Time we ran our own affairs, as usual all the money heads South.
Time we ran our own affairs, as usual all the money heads South. Real Lancs Assembly
  • Score: 0

Comments are closed on this article.

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree