The web publication, Local Government Lawyer, has helpfully summarised the key impacts on housing and planning detailed in the Comprehensive Spending Review 2010. Not much detail of how it will all work, but a statement of intent if nothing else:
Housing
- Social housing is to be made “more responsive, flexible and fair”. Social landlords will be able to offer a growing proportion of new social tenants new intermediate rental contracts that are more flexible, at rent levels between current market and social rents. The terms of existing social tenancies and their rent levels are to remain unchanged
- The council housing financing system will be reformed “so local authorities have greater control over their own finances, and can reinvest to meet local housing need”
- Investment via the Decent Homes programme “will continue to improve the existing social housing stock”
- There will be continuing, “but more modest”, capital investment in social housing. Building of new social housing is to be cut by 74%
- The government insisted that its changes would allow the government to deliver up to 150,000 new affordable homes over the Spending Review period
- A New Homes Bonus is to be introduced to directly reward and incentivise local authorities and local communities to be supportive of housing growth, “equivalent to matching the additional council tax from every new home for each of the following six years”. The total regulatory burden on the house building industry is to be reduced
Planning
- The government will increase housing supply by reforming the planning system so that it is more efficient, effective and supportive of economic development
- A New Homes Bonus is to be introduced to directly reward and incentivise local authorities and local communities to be supportive of housing growth, “equivalent to matching the additional council tax from every new home for each of the following six years”. The total regulatory burden on the house building industry to be reduced
- Further detail on tax increment financing and the future incentives and planning powers open to local authorities to support growth will be provided in a White Paper on local growth later this year
- The Localism Bill will ensure that the planning system both works for sustainable growth and is responsive to the needs of local communities. “As part of these wider reforms, there will be a new presumption in favour of sustainable development”
- The government has promised continued investment in flood and coastal erosion risk management, with £2bn spent during the Spending Review period.