The Chancellor has said that New Homes Bonus will, in London, be paid to the London LEP, rather than to the borough concerned.
This situation will not be replicated outside London, where NHB will continue to go to the local councils. The Autumn Statement announced that, from 2015, London NHB will go to the LEP, meaning, say London Councils, a cut of £70 million for the boroughs.
Chair of London Councils, Mayor Jules Pipe, said: “All Londoners should be outraged by this move. If the New Homes Bonus is essential for councils in Leeds and Manchester to fund the pressures of growth, why should Londoners be any different? This must be reversed.
“The very fact that it has been proposed raises fundamental questions about the governance of the growth agenda in London and the government’s commitment to it.”