The Coalition's Home Bonus Scheme

On the way into work this morning there was a bit on The Today program about this Home Bonus scheme from the coalition government. I gather they're trying to incentive home building by local councils by giving them a share of the central government grant in proportion to new houses built.

It doesn't feel right.

Ignoring the opposition's postulation that its a con cos the councils aren't getting new money, the bonus just comes from the same block grant they'd have got anyway. What I'm more concerned with is what I shall call 'the low hanging fruit effect'.

Councils who already find it easy to build houses will get the additional money whilst councils who currently find it difficult to build houses will get less money.

The net affect would, I guess, great estates of empty houses in areas with already a housing surplus. And no change for the housing stock-strapped councils, other than less money.

No?
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