COMMUNITIES will lose out if the Government’s ‘new homes bonus’ scheme is scrapped says the leader of Craven District Council.

The scheme was introduced in 2011 to provide extra funding for areas where new homes are built and in Craven has seen financial help going to market town projects in Settle, Grassington, Ingleton, Cross Hills and Bentham.

New Homes Bonus money has also helped with the upgrade of the Leeds and Liverpool Canal, the re-development of Skipton Town Hall, the DNAire project, and the rolling out of superfast broadband, amongst others.

It is now under review by the Government and North Yorkshire County Council has called for it to be scrapped, saying it has led to some developers 'land-banking'.

But, Councillor Richard Foster, leader of Craven District Council, said the scheme was an important funding stream for district councils and their communities and whereas there could be opposition to new homes, they were needed.

“We know there can be resistance to building new homes but without them, young people and families are struggling to get onto the housing ladder. Increasing the housing supply leads to more affordable housing in the area. The new homes bonus helps provide the facilities and improvements that communities need.

“Here in Craven, it has been targeted directly at the communities that need it most. The current system means that the areas where new housing is built will benefit from the funding – it cannot be siphoned off to other parts of the county.

“The council has chosen to invest the funding on new projects across the district, rather than propping up the revenue budget, as some other councils have chosen to do.We hope the Government will see sense and maintain current funding levels – otherwise local people will lose out.”