Agenda item

5.1  Members referred to the report published with the papers on Tax Increment Financing. It was noted that this opportunity has been conceived by the government as a way of creating value, but there are risks. Officers reported that this can be used to increase investment in transport, however  it can be hard to calculate value in London because increasing accessibility to an area is a matter of degrees.

5.2  Members turned their attention the briefing on New Homes Bonus. It was noted that that the information in the briefing came directly from the CLG website and as such reflects coalition government views and policy.

5.3  Members asked for an idea of the potential scope of the scheme for Southwark. The Interim Head of Planning and Transport reported that the average council tax for Southwark is £1000. This would be matched by the government per year, plus an additional £350 for each affordable home, and would be given every year for 6 years. It is aimed as a reward for delivering new homes. Officers reported that the governments stated aim is to instil in residents minds that new developments will yield money. Officers noted that there is presently a target of 1000 new homes a year set by the London Mayor. Members asked if Southwark could deliver more, and officers responded that some sites will need investment.  There are Brownfield sites and capacity.

5.4  It was noted by members that there are Registered Social Landlord’s with cash reserves who might consider this an opportunity. Members asked if the New Homes Bonus applies to council housing and officers confirmed it did, and there was an extra £350 for affordable homes. It also applies to homes brought back into use.

5.5   Members were advised that residents do not always welcome increasing density. Officers commented that Southwark has quite high density in certain areas, for example 1000 people per hector. These levels of density work in some areas but might not gain approval in other areas. Members asked officers how extra homes could be realised in Southwark and officers responded that one route would be to raise density levels in Peckham and Camberwell.

5.6  A member commented that we need to think about the quality of life on estates in areas such as Peckham and any plans for increasing density should be considered as part of the Area Action Plan. The member commented that he  was not convinced that this would be good for Peckham yet, and more evidence would need to be considered before this could be endorsed. There would need to be evidence that raising density levels would be good for Peckham. Furthermore, he commented, that we do need to consider the wider implications, such as affordability and will people on Housing Benefit be able to be housed.

5.7  Members discussed  forwarding this to the cabinet. It was agreed to forward the briefing to the cabinet lead for Regeneration and Corporate Strategy for further consideration.

RESOLVED

The committee resolved to send the New Homes Bonus briefing to cabinet member for Regeneration and Corporate Strategy; Cllr Colley, for review.