Funding currently worth £1.31m could be lost by Derbyshire County Council if proposals for reallocating New Homes Bonus funding in 2015-16 get the go-ahead.
The New Homes Bonus is paid to local councils for increasing the number of homes in their area. It is paid every year for six years for new-build homes, conversions and long-term empty homes brought back into use. There is also an extra payment for providing affordable homes.
Now the Coalition Government is considering pumping some or all of the money into local economic partnerships instead of giving it to councils.
Subject to cabinet approval tomorrow (10 September), the county council will write to Secretary of State for Communities Eric Pickles MP spelling out the negative impact this would have for Derbyshire residents.
Cllr Joan Dixon, Derbyshire County Council’s Cabinet Member for Jobs, Economy and Transport, said: “The county council has already written to Mr Pickles in protest over the £157m cuts we’re facing – and this is part of the reason why.
“The New Homes Bonus helps councils provide essential services for residents. If we lose this funding, the money for these services will have to be found from somewhere else. It all has a knock on effect which ultimately will lead to us losing some services that people rely on – we will have no choice.”