The investment will help LAs fund community facilities and services to back the construction of two million new homes by 2016. The money, which will be available over the next three years, will benefit more than 68 towns and cities across England including Grantham, Lincoln, and Northampton, which have already volunteered for housing growth as existing growth areas or growth points.
The new funding will give LAs greater flexibility in deciding where money is needed most, without needing to bid to the government to fund specific projects. The money will complement mainstream funding for transport, education and health services.
Speaking at the Future Homes conference, Yvette Cooper said:
"Those councils and communities that are doing their bit to deliver more homes should get more cash. They need extra funding for infrastructure as well as for local services - we need to invest in communities, not just in bricks and mortar. That means parks and play areas, as well as transport and public services.
"It's only fair that those who are doing most to support homes for the future should get extra support from government too. We've already said they should get £500m over the next three years to spend as they see fit. Now we're setting out extra cash for infrastructure too with more to come for other areas who sign up."
Further financial support will also be available in the Growth Areas, Growth Points and Eco-towns for local transport projects from the £200m Community Infrastructure Fund. Other councils and communities will also be able to benefit from additional funds through the Growth Points and Eco-towns programmes if their bids are successful.
Across the Growth Areas and Growth Points, the government aims to bring together the best of design and planning to ensure new communities are of the highest quality and have proper public services and infrastructure.
This funding means that, since 2003, Communities and Local Government (CLG) has provided £1.5bn to support delivery to the Growth Areas and Growth Points complemented by £2.2bn of transport spending from Department for Transport (DfT).
In the East Midlands some of the types of infrastructure schemes they are hoping to deliver as part of their overall plans for growth include:
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The provision of new green infrastructure - The 3 Cities and 3 Counties have plans for Strategic River Corridors along the Soar, Sence and Wreake in Leicestershire.
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Improvements to town centres - The regeneration of Grantham town centre will create new gateways in the town, an improved pedestrian friendly environment and a more vibrant mix of uses, including new retail floorspace, leisure provision and office accommodation.
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The provision of new community facilities - Northampton's planned regeneration of the Waterside will transform the area, providing along the river corridor a mix of employment, leisure and residential opportunities.
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The provision of transport solutions to support growth - The provision of the Eastern Bypass at Lincoln will support the delivery of a mixed used urban extension to the south east of the City while benefiting the existing community by improving the wider transport network and reducing traffic levels within Lincoln.
In addition, the new Planning Reform Bill sets out proposals for a new Community Infrastructure Levy (CIL) that will provide further additional investment in the vital infrastructure that growing communities need. CIL has the potential to help councils raise hundreds of millions of pounds, and can be spent on a wide range of community infrastructure at both local and regional level.
All development creates some need for infrastructure, services and amenities and it is only fair that every development pays its share. Currently 86 per cent of planning permissions for housing do not contribute anything. Authorities will be able to assess and cost the infrastructure that is needed to support planned development and consult on their proposed Levy charging scheme.
