Yvette Cooper pledges £732m to support housing growth

Housing and Planning Minister Yvette Cooper has announced plans to allocate £732m to local councils in the government's 'Growth Areas' and 'Growth Points' to boost the provision of schools, health centres, parks and transport.

The funding package, which comes from the Community Infrastructure Levy, part of the government's proposed Planning Bill, is designed to support the construction of the three million homes that the government plans to build by 2020 in 68 towns and cities that have volunteered for housing growth.

"Those councils and communities that are doing their bit to deliver more homes should get more cash. They need extra funding for infrastructure as well as for local services - we need to invest in communities, not just in bricks and mortar. That means parks and play areas, as well as transport and public services," Cooper said.

The £732m package will add to £500m-worth of funding for local councils to spend as they see fit over the next three years, and a £200m pot for Growth Areas, Growth Points and Eco-towns to spend on transport. 

In 2008/09, the government plans to allocate £224m to local councils from the levy, which is paid by for landowners when development starts on land with planning permission. A further £336m is expected in 2009/10/11, with a third allocation of £172m for 2009/10/11 following a consultation testing the new funding system.