At a special meeting of the full council yesterday (Monday 27 June) councillors agreed the deal which will also be debated by other councils in the proposed deal area.
If the plans are supported by the other councils there will be a consultation with residents and employers from 4 July to 22 August, in advance of any final decision being made.
The deal covers the potential transfer of a wide range of resources and powers for infrastructure, housing, economic development, employment and skills from the government to a combined authority of the seven councils, across Cambridgeshire and Peterborough and the Local Enterprise Partnership.
The devolution deal proposes two new funding sources to boost the delivery of affordable housing in Greater Cambridge:
1. A £70million fund for a ‘Cambridge Housing Plan’ over five years, ring-fenced to the city council, which the council will spend on its plans for over 500 new council homes to help tackle the city’s housing affordability crisis. Some £10million of this fund would be available to the city council to replace any of those 500 homes subsequently sold through the Right to Buy scheme.
2. A parallel second £100million affordable housing fund over five years to deliver affordable homes across the proposed combined authority area, with a mix of tenures to include affordable rented and low cost home ownership. A substantial proportion of this funding would be directed at the Greater Cambridge area, in recognition of its high levels of growth and difficult housing market conditions. It is likely that delivery would be primarily through housing associations.
Cllr Lewis Herbert, Leader of Cambridge City Council, said: “The devolution deal that we have agreed to support and share for public consultation would bring desperately needed new homes to Cambridge, helping us to ensure that people get the homes they need and deserve and to secure the future growth of the city’s economy.
“We have a housing affordability crisis in the city that requires strong action and we have negotiated hard with government to secure millions of pounds for investment in new homes, putting housing at the centre of the devolution deal.”
“It will now be for residents and businesses to have their say on the proposals in a public consultation and I would urge everyone to take this opportunity to put their point of view across.
“We will consider all of the comments we receive during the consultation, along with those of the new national government leaders, before deciding whether or not to confirm our initial support for the devolution plans.”
The deal would also see the creation of an elected mayor to chair the combined authority who would have specific powers, particularly over transport.
Notes
‘Cambridge Housing Fund’ within the Cambridgeshire and Peterborough Devolution Plan Subject to agreement on the devolution deal. Detail below agreed between Cambridge City Council and the government, also working with the seven council Cambridgeshire and Peterborough devolution team:
· £70m grant to be made available to Cambridge City Council, for it to use to build new council housing.
· At least £60m of the grant to deliver the 500 new council homes in Cambridge by the city council will spend the grant over a five year period on social rented homes (defined as rents at Local Housing Allowance levels).
· £10m of the grant will be available to the city council to replace any of the 500 homes subsequently sold through the Right to Buy.
· The city council will combine the funding with Right to Buy receipts in its control.
· The city council has already identified potential sites and will develop a detailed delivery plan.
· The new housing will be owned and managed through the council’s Housing Revenue Account (HRA) and will be let as secure local authority tenancies.
· Delivery of the new homes will be undertaken in close liaison with South Cambridgeshire District Council in relation to their complementary affordable housing programme and through the Greater Cambridge Housing Development Agency, the shared housing delivery vehicle operated by the two Councils.
· The city council will have the freedom to choose the extent that it provides the new homes on land that it owns or land owned by others (including through section 106 planning agreements).
· The grant will be made available to the city council through the new Combined Authority.
· The grant is separate and in addition to a £100m affordable housing grant in the Devolution Agreement for non-council Cambridgeshire and Peterborough housing for affordable rent and shared ownership housing to be provided via housing associations, including a particular focus on delivering this in South Cambridgeshire and Greater Cambridge.
· Issues relating to government plans for ‘higher value sales’, affecting Cambridge council housing, were not addressed in the devolution discussions and will be the subject of further discussion between the Government and councils, including with Cambridge City Council.
____________________________________________