COUNCILS across Hampshire have been handed millions of pounds as a reward for accepting hundreds of new homes in the area.

The Government’s New Homes Bonus was set up as an incentive to persuade councillors to give the goahead to badly needed housing development.

But the payment has been labelled a “bribe” by some conservationists, as it comes at a time when town halls are being forced to make swingeing budget cuts.

Grants, which continue for six years, are given in exchange for each new home built, and for every empty home brought back into use.

A council tax band D home would earn a council just under £9,000, with a £2,100 bonus paid for each one that is classed as “affordable”.

Southampton City Council will be given just over £1m, after adding 810 homes to its total in the last year.

When last year’s bonus is included, the council will be given more than £1.8m to spend on what it likes as the money is not ring-fenced.

In Eastleigh, where sites are currently being earmarked for 4,700 houses on greenfield sites over the next 18 years, the council banked £532,318 in exchange for 474 new homes added in the year up to October, while Winchester City Council was paid £655,569.

Although it is not in charge of planning applications, Hampshire County Council is given a share of the proceeds handed to district and borough councils, making £1.35m last year through.

Housing Minister Grant Shapps claimed the bonus was triggering a “culture shift”, with communities benefiting from development in their area.

The Campaign to Protect Rural England has opposed the New Homes Bonus, saying councils would be tempted to “fill shrinking coffers” by permitting any developments. The group said the principles of planning applications being taken in the public interest could be undermined.

But Southampton City Council leader Royston Smith said he believes the scheme is a positive way of encouraging necessary development.

He said: “It’s rewarding councils for being inventive in dealing with this massive need for new houses.

“We need more homes, but we might be tempted to say we haven’t the money for the infrastructure, but this gives the opportunity in the decision- making process to know there’s a bit of an incentive.

“This Government is doing everything it can to stimulate the housing market.”