In the think-tank and lobbying organisation's consultation response to the Government's latest local government finance settlement, which calculated the powers of spending for every council in England, the body said that the decision to transfer the new homes bonus funding from the London boroughs was not included in the spending calculations. As a result, it claimed that the spending power of the boroughs has been overestimated.
The new homes bonus is a scheme designed to encourage local authorities to grant planning permissions for more new and affordable homes in return for additional revenue. The Government is seeking to transfer £70 million of this funding to the London Local Enterprise Panel, a partnership between the London boroughs, City Hall, Transport for London and businesses.
The Government is currently in the process of analysing the responses it received during the consultation, which closed on 15 January.
