Agenda item

-        Strategic Director of Neighbourhoods and Adult Services to report.

Councillor Akhtar, Deputy Leader, introduced a report by the Strategic Director of Neighbourhoods and Adult Services, which gave an update on the New Homes Bonus, to note how it could be used to invest in urban renewal and place-making to contribute to sustainable economic growth and to set out an investment proposal for 2011/12.

Rotherham received notification that £508,364 would be the New Homes Bonus for 2011/12 and that future levels of bonus would be very dependent on the scale of new housing delivery locally, the number of long term void properties and the number of homes demolished.

The report set out in detail the principles in considering how best to utilise the New Homes Bonus, the use of this year’s Allocation Infrastructure Delivery Plan, proposals for Canklow – Urban Renewal and an indicative list of how the New Homes Bonus may be used.

This year’s bonus settlement was detailed in the report along with projections of what future years bonuses may be. 

As the number of new homes increased so would the amount of New Homes Bonus to be paid.  Therefore, use of the New Homes Bonus to stimulate housing growth would in turn lead to more revenue for the Council, which could be re-invested.

Neighbourhood Investment Services would use the New Homes Bonus to continue key urban renewal projects in the most deprived areas.  Areas such as Canklow have not yet reached the tipping point to become self sustaining.  The investment that has already been made into Canklow needed to be protected and if regeneration was halted the benefit of previous investment would be lost.  This was in line with the Council’s objective of ensuring that “No Community is Left Behind”.

Failure to invest in Affordable Housing would mean that the Council’s waiting lists would continue to grow.  As well as absolute numbers of people who could not afford to buy there would be a lack of specialist provision such as Older Persons Accommodation for people to downsize to homes that better met their needs. The knock on effect of this was that fewer family sized Council homes would become available as older people move out of them.  Similarly the authority had a need for housing for people with disabilities, particularly family sized accommodation where a parent or child was disabled.

If the New Homes Bonus was used at this time to continue urban renewal and stimulate housing growth then the Council would benefit from an increased amount of New Homes Bonus in future years.  The Government have only allocated additional funding to support New Homes Bonus payments until 2014/15.  After this year funding for the rolling programme would come from formula grant.  Therefore, to gain the maximum additional revenue there was a need to use New Homes Bonus to enable delivery of new homes quickly and before 2014/15.

Using New Homes Bonus to stimulate housing growth would create a greater pot of New Homes Bonus which could be used as cyclical investment for future projects.

The Infrastructure Delivery Plan would be a key document in delivering the objectives of the LDF.  If Rotherham did not undertake this piece of work then future planning objectives may be compromised.

Resolved:-  (1)  That the importance of the introduction of the New Homes Bonus be noted.

(2)  That £50,000 of the New Homes Bonus be used to support the publication of an Infrastructure Delivery Plan for Rotherham via Planning Services.

(3)  That £458,364 of the New Homes Bonus be used to invest in urban renewal in Canklow to make the area attractive for inward investment and achieve the tipping point where it would become sustainable.