- Consultation on the design of a new infrastructure levy to be
paid by developers published today
- Councils to be given new powers to set levy rates on new
development and spend on what they need locally
- New ‘right to require’ aims to increase affordable housing
delivery and stop developers negotiating down contributions
A new levy will see developers pay a fairer share for affordable
housing and local infrastructure such as roads, schools and GP
surgeries the Government has announced today, Friday 17
March.
The infrastructure levy, which will replace section 106
contributions for most developments, will prevent developers from
negotiating down the amount they contribute to the community when
they bring forward new projects.
Under the proposals, the amount developers will have to pay will
be calculated once a project is complete, instead of at the stage
the site is given planning permission. This will make sure that
councils benefit from increases in land value, which can be
significant for large developments that take years to complete.
Councils will also be given powers to set rates themselves,
putting power in the hands of local leaders to deliver what their
communities need.
The levy will also give communities more control over how this
money is spent. A portion of the money will be passed directly to
communities as a ‘neighbourhood share’ to fund their
infrastructure priorities, while councils will be required to
engage with communities and create a infrastructure delivery
strategy.
Secretary of State for Levelling Up, Housing and Communities,
said:
Central to our levelling up mission is ensuring local communities
can take back control.
The infrastructure levy will do just that – giving local leaders
the tools to bring forward more affordable housing and the
transport links, schools and GP surgeries their communities
need.
It will also speed up delivery and put an end to lengthy
negotiations with developers seeking to shirk their
responsibility to provide for local people.
The levy is designed to deliver at least as much affordable
housing as the current system. Councils will be given a new
‘right to require’, so they can dictate how much of the levy is
delivered through affordable housing on-site in new developments
and how much is given in cash for other infrastructure, such as
new schools, transport links or GP surgeries.
The ‘right to require’ will also speed up the process and stop
developers from negotiating down their affordable housing
contributions as they will have a legal obligation to meet the
amount set by the council.
The levy will be introduced as part of the Levelling Up and
Regeneration Bill, and a consultation on the Government’s
proposed system has today been published.
The Government recognises that the levy will be a significant
change so it will be introduced through ‘test and learn’ over a
10-year period. A small number of councils will implement the
levy initially, testing how it operates in practice, before being
rolled out more widely, to make sure the Levy can successfully
deliver on its objectives.
The consultation will run for 12 weeks and the Government
anticipates that it will consult further on proposed regulations,
when the responses to this consultation have been fully
considered
The announcement follows the publication last week of a new
action plan to speed up delivery of Nationally Significant
Infrastructure Projects such as transport links and offshore wind
farms.
The Government has also today published a consultation on a new
Environmental Outcomes Report. This new approach will allow us to
replace over-complicated EU regulations with a new system of
environmental assessment that is tailored to the country’s needs
and supports our ambitious environmental targets.
The new system will enshrine at least the same overall level of
environmental protection in law. It will allow the Government to
streamline processes and reduce the burden of bureaucracy, making
sure environmental assessment is focused on what really matters.
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