The Government is keen for councils to build new houses; so keen that it is dangling a £500m carrot to those who can help solve the UK’s housing crisis. For others, however, will loom the threat of having to raise councils tax bills if they refuse to sanction building on green fields.
Gordon Brown wants to build three million new homes by 2020, and Housing Minister Yvette Cooper unveiled a package of housing incentives for councils who ‘raise their game’. In return for selecting area for housing – which can include green fields and gardens – councils will share grants totalling £500m. Those councils that do not do so, or which drag their heels in building new homes, will get none of the extra cash.
Such are these incentives that councils allowing developments in green areas will be able to hold down their council tax bills more than those who do not co-operate. It will be a great temptation for councils desperate to keep their council tax bills down.
Naturally the Tories are up in arms. Tory housing spokesman Grant Shapps said: “Labour ministers are attempting to blackmail town halls into accepting unpopular developments against the wishes of local residents. People effectively face the threat of higher council tax if they don’t bow to the Government’s targets. We need to build more homes but we need to do it in a sustainable way and without trampling over the wishes of local people.â€
Currently there are 160,000 new homes built each year. The plans for the extra number of homes will mean over 230,000 new homes each, and have been criticised by claims that they will place to high a burden on local infrastructure, including schools, hospitals, water supplies and transport.
Previously town hall incentives from government have related only to the speed and efficiency of the planning process.
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