Housing Minister Grant Shapps has pledged cash for communities who allow new homes to be built in their area.

Almost £1 billion Government funding has been set aside for councils that welcome new housing development, which they will be able to spend to benefit their local community.

In proposals published for consultation, the Minister has announced that the Government will match the council tax raised from new homes for the first six years through the New Homes Bonus. Councils and communities will work together to decide how to spend the extra funding - whether council tax discounts for local residents, boosting frontline services like rubbish collection or providing local facilities like swimming pools and leisure centres.

Mr Shapps said councils who have already set out their stall for growth are building up rewards for their local area, and all homes that are built now will benefit from the new funding. Councils will also receive a higher level of funding for building new affordable homes.

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Mr Shapps said: "We are ending the system where the Government can tell communities what and where to build - that top-down approach slowed housebuilding to a trickle, so we need to take action now to get the country building again. That's why we've set aside almost £1bn so councils who build more homes start benefiting immediately from the extra cash, which they can spend on improving the local area.

"For too long communities have fought against development because they can't see how it does anything to improve their lives. I'm determined to change this. The New Homes Bonus will ensure that those communities that go for growth reap the benefits of development, not just the costs.

"Councillors will now be able to lead a mature debate about the benefits of development. And rather than being punished for not meeting targets, local communities will now have a reason to say yes to new homes, because they will benefit from better local services, or perhaps the redevelopment of their town centre in return for backing new housing."

Councils will benefit from a higher level of funding for encouraging new affordable homes to be built in the local area, with council tax matched and then supplemented by £350 per home each year for six years.

(CD/KMcA)