Announcing consultation on criteria for allocating the £170 million grant, planning minister Keith Hill said that the change reflects the burden on councils who struggle with poor quality housing.
Measures to punish authorities whose performance is poor on appeal will be strengthened. Where the number of appeals upheld against an authority's decision to refuse is 40 per cent greater than the national average, ten per cent of PDG for development control will be withheld. This could rise to 20 per cent if the figure is 50 per cent above average.
John Silvester, spokesman for the Planning Officers Society, said he is against withholding grants from poorly-performing authorities because this is where funding is most needed.