Agenda item

Proposed Use of New Homes Bonus

To consider the report of the Director Economy and Development and the Assistant Chief Executive.

 

(Report circulated)

 

Decision:

(Minute 113)

 

The joint report of the Director Economy and Development and the Assistant Chief Executive was submitted, briefing Executive on the New Homes Bonus (NHB) and proposing principles for how it should be used.

 

The Director reported that the New Homes Bonus, originally introduced in February 2011, was a significant source of funding intended to incentivise house building. He outlined proposals to identify 50% of the Bonus for a major infrastructure fund to provide a significant capital project for the benefit of the whole city, and 30% for localised community infrastructure. He emphasised the need to be cautious in committing funding as there was no guarantee of the continuation or allocation of the fund in the long term.

 

Members welcomed the opportunity the fund provided for significant capital projects such as a new swimming pool and the affordable housing programme.  They also welcomed additional funding for localised community infrastructure projects that would address existing deficiencies in local facilities. Whilst the creation of successful communities was partly attributable to committed individuals, the existence of a physical hub for the community such as a meeting place was also very significant. They emphasised the role of planning in this process and cited past developments which had been created without such a facility.  Members were keen to ensure the even spread of funding across the city in order that funds were not concentrated in those areas with an effective existing community association. They noted the existence of many successful community initiatives in the city and agreed that lessons could be learned from those.

 

Executive noted the anticipated allocation of New Homes Bonus for 2011/12 and that beyond 2012/13 there was some uncertainty about the long term funding of new homes bonus. They considered it prudent, therefore, to limit financial commitments to the short term, providing the opportunity to review proposals for expenditure associated with the NHB when the Government finally publishes policies and guidance for funding local government.

 

Executive resolved that New Homes Bonus be used with regard to the following principles:

 

(1)        that NHB funding will be used to direct benefits from new development to the Exeter community;

 

(2)        that, on the basis of the current assumptions about NHB, 50% of the NHB funding received will be ring fenced for major infrastructure works to meet city wide priorities, such as the provision of a new swimming pool and the revenue implications of the Council’s affordable housing programme;

 

(3)        that in the short term 30% of the NHB funding received will be ring fenced for local community infrastructure on the basis that funding commitments can only be made against income received;

 

(4)        that a NHB panel shall be established to oversee the allocation of the local community infrastructure fund;

 

(5)        that a further report be considered by Executive on the detailed proposals for the New Homes Bonus Panel and the role of the ward member(s) in bringing forward possible proposals for funding;

 

(6)        that £100,000 is made available to support the production of neighbourhood plans over the next five years; and

 

(7)        that Executive recognises the resource implications of supporting this programme and funding will be made available for capacity building and technical studies.

 

Minutes:

The joint report of the Director Economy and Development and the Assistant Chief Executive was submitted, briefing Executive on the New Homes Bonus (NHB) and proposing principles for how it should be used.

 

The Director reported that the New Homes Bonus, originally introduced in February 2011, was a significant source of funding intended to incentivise house building. He outlined proposals to identify 50% of the Bonus for a major infrastructure fund to provide a significant capital project for the benefit of the whole city, and 30% for localised community infrastructure. He emphasised the need to be cautious in committing funding as there was no guarantee of the continuation or allocation of the fund in the long term.

 

Members welcomed the opportunity the fund provided for significant capital projects such as a new swimming pool and the affordable housing programme.  They also welcomed additional funding for localised community infrastructure projects that would address existing deficiencies in local facilities. Whilst the creation of successful communities was partly attributable to committed individuals, the existence of a physical hub for the community such as a meeting place was also very significant. They emphasised the role of planning in this process and cited past developments which had been created without such a facility.  Members were keen to ensure the even spread of funding across the city in order that funds were not concentrated just in those areas with an effective existing community association. They noted the existence of many successful community initiatives in the city and agreed that lessons could be learned from those.

 

Executive noted the anticipated allocation of New Homes Bonus for 2011/12 and that beyond 2012/13 there was some uncertainty about the long term funding of New Homes Bonus. They considered it prudent, therefore, to limit financial commitments to the short term, providing the opportunity to review proposals for expenditure associated with the NHB when the Government finally publishes policies and guidance for funding local government.

 

RESOLVED that New Homes Bonus be used with regard to the following principles:

 

(1)        that NHB funding will be used to direct benefits from new development to the Exeter community;

 

(2)        that, on the basis of the current assumptions about NHB, 50% of the NHB funding received will be ring fenced for major infrastructure works to meet city wide priorities, such as the provision of a new swimming pool and the revenue implications of the Council’s affordable housing programme;

 

(3)        that in the short term 30% of the NHB funding received will be ring fenced for local community infrastructure on the basis that funding commitments can only be made against income received;

 

(4)        that a NHB panel shall be established to oversee the allocation of the local community infrastructure fund;

 

(5)        that a further report be considered by Executive on the detailed proposals for the New Homes Bonus Panel and the role of the ward member(s) in bringing forward possible proposals for funding;

 

(6)        that £100,000 is made available to support the production of neighbourhood plans over the next five years; and

 

(7)        that Executive recognises the resource implications of supporting this programme and funding will be made available for capacity building and technical studies.

 

(Report circulated)

 

Supporting documents: