BROMSGROVE councillors approved a scheme on how to distribute New Homes Bonus (NHB) money at its latest meeting.

The issue of NHB funding has been widely debated after Hagley residents handed in a petition to Bromsgrove District Council urging them to pass this money on to communities, like the village, affected by housing development.

The council, which receives £1,455 for each home built plus extra money for each affordable one, has received £1.3million since the NHB scheme was introduced.

A cross party working group was established as a result of the petition, which has gone on to have meetings discussing the issue and a way forward.

At the last meeting of the authority's cabinet, senior councillors recommended the approval of a NHB scheme.

The allocated scheme sets out that grants can be applied for as long as the business case shows evidence an area has been affected by housing growth.

This recommended scheme went before for the full council at its latest meeting held at the Council House on January 19.

In presenting the proposal to the chamber Michael Webb, the portfolio holder for finance, said: "I for one think New Homes Bonus is a district wide point .

"The scheme will cover and benefit the district as a whole."

The scheme was put to vote and was approved unanimously.

A decision on the percentage and amount of NHB money that will be recommended to be allocated to the scheme will be made at the next meeting of the cabinet in February.

This recommendation will then go to the full council to be debated.