Financial incentive to grant planning permission dwindles
In 2011, the then Conservative and Liberal Democrat coalition Government found a new way to incentivise local authorities to increase their house-building programmes - with the introduction of the New Homes Bonus.
Initially, the Government promised to pay the equivalent of six years’ council tax payment for each new home built to help pay for essential infrastructure improvements. There was extra cash to be had for affordable homes. Maidstone benefited substantially from the scheme, and when they were considering planning applications, officers began to report to councillors how much revenue each new housing development would bring to the borough.
For example, in 2016, when the council’s planning committee was considering a controversial application for 800 homes to the south of Sutton Road, they would told permission would earn the council £9.5m in New Homes Bonus. But over the years, the payments have become more stingy.
In 2017, the Government introduced a base-line growth figure of 0.4% of housing stock and said the bonus would only be given for completions above that figure. It also reduced the length of time for which the payments would be made from six years to five and then to four. In the year 2015/16, Maidstone received £4,306,285 from its New Homes Bonus.
This year that figure has shrunk to £3,880,844. Despite building more homes than any other Kent authority, Maidstone is not receiving the most money that honour goes to Dartford which is to rake in £4.7m. Tonbridge and Malling comes close behind Maidstone. It is to receive £3.4m this year, while Tunbridge Wells will get only £1.1m. Thanet is “earning” less than any other authority, it will receive only £599,000.