Developers warn new levy could delay housing plans
Developers have warned that the Government's plans for a new development levy could hold up delivery of new homes and communities. That's the concern voiced by the British Property Federation (BPF) which has reservations about the Community Infrastructure Levy (CIL), more details of which have recently been published by ministers.
The BPF is worried that a number of issues remain unclear and has highlighted fears that the levy could be set at a level which could delay or halt the creation of new homes and commercial development.
The federation has argued strongly that the CIL charging schedule should be a development plan document so that the levy can be part of the planning application process. If that is the case, disputes about CIL could be subject to appeal to the Planning Inspectorate. This would be an important safeguard, the BPF has argued.
Michael Chambers, BPF director of regeneration and development, said: "We believe that CIL has the potential to offer speed and certainty to the process by which developers contribute to the infrastructure our towns and cities need - but it must be implemented in a sensible manner."
He added: "We welcome the latest document but it is clear that a lot more work on CIL needs to be dome. The skeleton of a CIL system is in place but we still have concerns about crucial areas of detail, such as how local authorities will assess the viability of a CIL charge and the extent to which CIL will really operate within the planning system."
Housebuilders have also welcomed the opportunity to be consulted on how the levy, due to be introduced next year, will work in practice.
The Royal Town Planning Institute has urged ministers to make sure the CIL guidelines contain a clause which allows funding to be recovered by companies paying the levy if local authorities fail to deliver the promised infrastructure within a "reasonable" timeframe.
Meanwhile energy companies and the Environment Agency are continuing to argue the case that key energy and flood protection infrastructure should be exempt from the proposed new charge.
The Government will invite further views on the design of the levy through public consultation later this year.
A Communities and Local Government spokesperson said: "CIL will be a discretionary tool for local authorities and they will decide whether the circumstances in their area make the introduction of CIL appropriate and at what level to propose setting the charge.
"The levy will also offer greater certainty to industry because charges will be consulted on, independently examined and published in a local charging schedule; if economic circumstances change they could be reviewed and revised.
"This will provide a step change from the existing system of lengthy negotiated agreements, creating transparency, fairness and certainty for the development industry, and ensuring that CIL levels stimulate, rather than choke development."
Read the Communities and Local Government statement on the CIL
Roger Milne
14 August 2008
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