Consultation considers future of New Homes Bonus in national parks and development corporations
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The government is considering removing New Homes Bonus (NHB) payments from councils covered by national parks and development corporations.
DCLG this week launched a consultation on how it proposes to calculate next year’s local government settlement.
It called for views on removing a loophole where councils receive NHB payments even though a different planning body makes decisions on planning applications.
The consultation said: “Government is seeking views on whether, in such areas, the bonus paid to local authorities should be removed or reduced in line with the proposals set out above, that is, whether the decision making by the National Park Authority or Broads Authority should be reflected in bonus allocations.
“The same considerations apply where development corporations are established — whether urban development corporations, or mayoral development corporations in London.
“These bodies are again the local planning authority for decisions on planning applications but not the recipients of the New Homes Bonus.”
Until now, councils in national parks and development corporation areas have not received NHB payments. However, the government has required billing authorities to discuss the use of bonus receipts.
Elsewhere in the consultation, the government is seeking views on whether to extend requirements to hold council tax referenda to precepts set by mayoral combined authorities.
Currently, councils are required to hold a referendum in cases where it is seeking to increase council tax by 2% or more.
Newly-established mayoral combined authorities in Cambridgeshire & Peterborough, Liverpool City Region, Tees Valley and West Midlands are able to set a precept for mayors’ general functions
The Greater Manchester Combined Authority can set a precept for both the mayor’s general functions and for his police and crime commissioner functions.
The consultation said: “Since newly established MCAs’ mayoral precepts will have no Band D amount from the previous year on which such calculations can be made, it would be necessary to set notional figures or alternative notional amounts (ANAs) for all authorities concerned to enable this determination to take place.”
The government said it would engage with mayors and authorities to discuss the level of ANAs, “taking account of any conferral of functions, including additional mayoral functions and the need to limit pressure on council tax bills”.
The consultation is set to close on 26 October, with provisional details of the settlement set to be announced before Christmas.
