Developers & Housebuilders halt Planning Gain Supplement legislation

marksimonbrown mark at
Mon Oct 15 18:01:08 BST 2007

Looks like an alliance of developers and housebuilders has succeeded in 
getting New Labour to scrap the proposed Planning Gain Supplement, no 
doubt because it would have cost them too much money. It is curious 
that the legisation is now being entirely replaced by something else, 
since a bill was waiting to go through parliament specifically on the 
Planning Gain Supplement (Ref:  ).

Pre-Budget: Planning Gain Supplement scrapped
Publish Date: 09 October 2007 
Chancellor Alistair Darling has announced the government is to consider 
proposals put forward by an alliance of developers and homebuilders as 
an alternative to the planning gain supplement (PGS). 

In its pre-budget report, the government said that legislation 
implementing PGS would not be introduced in the next parliamentary 
session. Instead it would "legislate in the Planning Reform Bill to 
empower Local Planning Authorities in England to apply new planning 
charges to new development, alongside negotiated contributions for site-
specific matters". 

The move follows the submission of an alternative to PGS by the British 
Property Federation, Home Builders Federation, Major Developers 
Association and London First. 

The alliance suggested a system of standard planning charges or tariffs 
set locally to reflect regional needs instead of the proposed PGS, 
which imposes a tax on the increase in land value following the 
granting of planning permission. 

The move to defer legislation was welcomed by members of the industry 
coalition, who promised to assist in the development of a local system.

Liz Peace, chief executive of the British Property Federation, 
said: "We know from the more than twenty existing local tariff schemes 
that they can be made to work in a way that secures local support and 
retains industry confidence while delivering much-needed infrastructure 
investment to underpin development."

Stewart Baseley, executive chairman of the Home Builders Federation 
agreed: "We welcome the Chancellor's recognition that the proposed 
Planning Gain Supplement was unworkable. To deliver the much needed 
240,000 new homes per year it is vital we agree a workable system to 
raise additional funds for necessary infrastructure."

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