Developers might face extra levy

14 Aug 08
Developers have complained to the government that they might be double charged for affordable housing under the new community infrastructure levy.

15 August 2008

Developers have complained to the government that they might be double charged for affordable housing under the new community infrastructure levy.

Although affordable housing will initially be excluded from the infrastructure that can be provided through the levy, a new policy paper suggests that regulations may be revised to allow councils to charge top-up contributions.

John Slaughter, director of external affairs at the Home Builders' Federation, said this could mean developers are charged twice – once through regular section 106 'planning gain' agreements and again via the levy.

'The government has said that it won't look to include affordable housing in the levy but it is providing the possibility that it will be,' he said.

The policy document, published earlier this month by the Department for Communities and Local Government, says the government will monitor how the levy operates alongside planning agreements before deciding whether to permit top-up contributions. It is also promising to improve section 106 agreements.

The community infrastructure levy will be charged by local authorities on an optional basis from next April.

Paul Bettison, chair of the Local Government Association's environment board, said councils should be pleased that ministers had opted for a 'locally-led approach' that would allow them to prioritise funding for infrastructure projects that benefit more than one authority.

 

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