YORK’S four political leaders have called on the Government to ensure millions of pounds in funding earned from new homes being built in the city is not diverted to quangos.

Plans have been announced to put £400 million a year of New Homes Bonus payments into a “growth fund” which would be at the disposal of Local Enterprise Partnerships (LEPs) rather than councils.

City of York Council has received £4.98 million through the bonus scheme since it was launched in 2011/12 due to housing developments being completed and empty homes being brought back into use.

Councillors James Alexander, Ian Gillies, Keith Aspden and Andy D’Agorne have signed a cross-party letter to York-born Business Secretary Vince Cable saying York’s payments had helped meet increasing adult social care costs and paid for “economic stimulus measures”, and allowing the funds to be used by LEPs instead was “something we fundamentally disagree with and express our opposition to”.

The leaders said LEPs mainly consisted of “unelected individuals with no democratic mandate” and the growth fund could mean money earned by York being spent elsewhere in North or West Yorkshire. The letter called for the Government to review the move and allow councils to “play a full part in determing their own economic destinies.”