Milton Keynes developers face £18,000 roof 'tariff'

Milton Keynes Council is backing proposals for a tariff system, dubbed as a 'roof tax', which would mean planning consents for major schemes in and around the city will not be approved unless developers agree to standardised contributions designed to ensure key local and regional infrastructure is provided.

The contribution will be based on the number of dwelling units involved and a separate contribution for each employment site calculated on the basis of floor area. Developers can expect to pay around £18,000 per new dwelling under this system, it has emerged.

The arrangements, a break with the traditional approach of ‘site by site’ negotiations via section 106 agreements, have been drawn up by the local urban regeneration agency, known as the Milton Keynes Partnership Committee, which has been created as the 'local delivery vehicle' for ensuring sustainable development in part of one of the growth areas identified under the government’s sustainable communities strategy.

The tariff approach was outlined in public during a recent appeal hearing over the non-determination of plans by Taylor Woodrow Development for a major scheme involving 1,400 new homes at Broughton Manor Farm.

Under this system, some 10 per cent of the per unit contribution will be effectively ‘front-loaded’ and provided by developers once they obtain reserved matters approval with a further 15 per cent paid up once development starts.

The remaining 75 per cent will be paid on completion/occupation of each consented phase of development.

John Best, chief executive of Milton Keynes Council, said the local authority backed this approach which, he said "should secure significantly greater contributions from developers towards local infrastructure and facilities".

He added: "We want developers to agree a substantially increased contribution towards the cost of the infrastructure to meet the needs of a growing community. In return, they will have greater certainty that the schools, surgeries and other facilities would be up and running as the houses are built."

Best said his council was talking to central government to make sure that local services "have the capital and revenue funding to allow the facilities to open and deliver local services".

The chief executive said that although the tariff approach went "well beyond" what the planning authority has achieved the past. He added: "We believe this can be fully justified within the reach of section 106 planning gain agreements without the need for new legislation."

Roger Milne

15th April 2005