So we have informed you that the Council have received £347,064 and that it can be spent by the community on community things.
How can the Bonus be used?
New Homes Bonus is an un-ringfenced grant, which means local authorities are free to decide how to spend it, as they are in the best position to make decisions about local priorities. As un-ringfenced grant, Bonus funds can be spent on either revenue or capital, strategic projects, or placed in a local authority’s reserves. There is no time limit on when the funds can be spent.
However, the Government expects local authorities to engage with the communities most affected by housing growth to decide how the money is spent, so residents can share in the benefits of growth.
A Case Study
Because the New Homes Bonus is paid as an unringfenced grant, authorities are using it in a variety of ways. Below is an example of how the Bonus fund was used in Uttlesford (Essex).
“Uttlesford District Council are allocating some of its new Homes Bonus to fund a new hi-tech shelter for teenagers at Carver Barracks including Bluetooth and MP3 player. The power supply comes from the teenagers using crank handles which means that the battery will never go flat. It forms part of a larger new play park. The idea for the project came from a committee – The Rowney Community Park Fund
– made up of soldiers’ wives.”