Newspaper article The Journal (Newcastle, England)

New Planning 'Tax' Risks Development

Newspaper article The Journal (Newcastle, England)

New Planning 'Tax' Risks Development

Article excerpt


THE most controversial proposal in the Planning Act, the planning gain supplement, was abandoned last November. In its place is an initiative called the Community Infrastructure Levy.

The CIL means the cost of infrastructure needed to support new housing estates and business parks will be met by landowners. The cash is supposed to go to the "charging authorities" - usually the local council.

Developers are now demanding the Government defines and limits the scope of this proposed planning tax or risk jeopardising development.

Property organisations have asked what the CIL can be used to pay for, and for that to be included in the Planning Reform Bill. Otherwise there is concern councils will expect developers to stump up ever more towards "infrastructure" through the CIL and section 106.

The Bill says the aim of the regulations is to ensure costs incurred in providing infrastructure to support the development of an area can be funded wholly or partly by the owners of land which increases in value due to permission for development.

It is questionable whether a uniform approach to CIL could work. Differences in development size and type, regional economy priorities and land contamination require a flexible approach, such as happens in the section 106 system. …

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