This week the government will confirm terms for allocating New Homes Bonus

锘縎ome councils stand to lose out on tens of millions of pounds in government subsidy by abandoning plans to build homes, according to figures from the Home Builders鈥� Federation.

The HBF made the call as the government this week confirmed the basis on which its allocation of the New Homes Bonus will be distributed. The bonus has been set up to reward councils that allow the construction of more homes in their areas, by paying them the equivalent of council tax for six years for every home built - worth on average more than 拢8,000.

Leeds council is the worst off, losing out on up to 拢27m of funding each year because it has reduced planned housebuilding in its area by more than half, from 4,740 to 2,300.

Other councils potentially to be affected include Bristol, Sheffield and Birmingham, which could lose out by 拢18.6m, 拢14.2m and 拢10.8m respectively. In total, eight councils stand to lose more than 拢10m in possible subsidy each year.

Councils have been allowed to cut building plans since the scrapping of regional housing targets in May. Stewart Baseley, executive chairman of the HBF, said: 鈥淭he figures highlight the income local authorities can generate by building the new homes their areas need.鈥�

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