Issue - meetings

To consider the strategic director’s report. 

Cabinet considered the head of finance’s report that recommended an interim policy on how to use the new homes bonus, the government’s scheme to encourage councils to increase housing growth. 

Cabinet recognised that while the council would receive new homes bonus over the coming years, the council did not know how its core funding from government would change.  Therefore, Cabinet considered it prudent not to use all the new homes bonus expected over the next six years, only to find that in later years the council might have to re-prioritise some of those funds to support essential services.  Cabinet decided to adopt a cautious approach, making some funds available for wider use but setting the bar high for accessing it, and allocating funds to support specified areas of expenditure in a priority order.  Cabinet believed that supporting the revenue budget was the highest priority, followed by supporting the capital programme, followed by supporting community schemes via area committee grants.  The Cabinet member for finance reported on the percentages to be used to allocate the useable funds across area committees; for 2013/14, these would be Abingdon 19.3 per cent, North East 9.5 per cent, South East 31.4 per cent, and West 39.8 per cent. 

RESOLVED: to set an interim new homes bonus policy as follows:

(a)       ring fence all funding the council receives through the new homes bonus (excluding affordable housing premium) to support the following priorities (in descending order of priority):

(i)      achieving a balanced budget (supporting the revenue account)

(ii)     achieving a balanced budget (supporting the capital programme)

(iii)    provision of new homes bonus grant to support community schemes to be allocated to areas committees for distribution

(b)       ring fence the affordable housing premium to support the delivery of further affordable housing schemes.