On the 100th anniversary of the first Planning Act, Housing Minister John Healey has announced support for councils to plan and deliver new homes and green energy projects to power the country to a low carbon future.

Councils will get a share of a £135m funding pot for planning and building new homes, and expert support to pioneer a new way of working with developers to deliver renewable energy schemes, such as biomass and geothermal power plants.

The funding which comes from the Housing and Planning Delivery Grant (HPDG) will provide a direct incentive for councils to work with partners in the public and private sector to ensure that new, green homes are built where families need them.

It is an additional top-up to mainstream funding and councils can choose how to spend it locally.


Last year councils received £100m, the provisional allocations for the second year of the three-year grant, (covering 2009-2010) have now been confirmed for councils that have identified at least five years worth of suitable sites ready for housing and a further ten years worth for future development.

Mr Healey said: "In 1909 the planning system was born to meet housing needs brought about the industrial revolution.

"One hundred years later the planning system is needed again for the green revolution, to integrate the economic and environmental objectives of the country and provide greener, more affordable homes that will help everyone do their bit to tackle climate change.

"We are determined to deliver the housing that is needed in order to improve affordability - particularly for first-time buyers, reduce pressure on waiting lists and address over-crowding.

"While many councils are delivering good quality homes quickly, some are failing to properly identify land for the homes their communities need. Supplying land for housing is vital to securing as much house building as possible during the downturn and for housing development upon the upturn.

"This incentive will ensure that all councils are taking action now. It will also give the house building industry greater certainty around development proposals.

"I want to give green planning a green light and to make it as simple as possible to get the permission people need to build green developments that are vital for making the transition to a low-carbon economy."

(CD/BMcc)