The government has given Tower Hamlets a massive cash boost for new homes which dwarfs that awarded to other local authorities in the next financial year.

The borough is to receive �16m government funding under its New Homes Bonus scheme, after it built more new homes in the last year than any other English local authority.

Housing minister Mark Prisk has split a �661m pot of funding for 2013/14 between local authorities in the country, with Tower Hamlets receiving �6m more than any other.

Tower Hamlets’ cabinet member for housing Cllr Rabina Khan said: “This new allocation will enable us to continue to increase the number of new homes under and will help to keep vital services going, supporting some of the most vulnerable people in our community.”

The recent Census figures showed that the borough’s population increased almost 30 per cent, by 55,000 – a bigger increase than any other local authority in England and Wales.

Mr Prisk promised the money will benefit local communities, and that the cash would see thousands of new homes built across the country.

Mayor of Tower Hamlets Lutfur Rahman said the announcement proved he was delivering on a key pledge of his 2010 election campaign.

“In spite of all the claims from Tower Hamlets Labour Group to the contrary, my promise to build more homes has, and is, being delivered - and that is now recognised by government”, he said.