Cross-sector group calls on Government to abandon Infrastructure Levy reforms
Councils, housing associations and property developers have made a joint call for the Government not to introduce the proposed Infrastructure Levy (IL), warning the upheaval and time it would take to roll the new system out would create "prolonged uncertainty across the planning system".
In a joint letter signed by 33 organisations spanning the housing, local government and construction sectors, the cross-disciplinary group said the proposals will result in fewer "new social and affordable homes, mixed and balanced developments and less of the infrastructure they need".
The Government consultation on the new levy that ended earlier this month (9 June) said the changes would see developers pay a fairer share for affordable housing and local infrastructure such as roads, schools and GP surgeries.
It will replace section 106 contributions, which are paid by developers and fund affordable housing as well as site-specific infrastructure.
Councils will be given powers to set rates themselves, and the amount developers contribute to the community will be calculated once a project is complete, instead of at the stage the site is given planning permission under the new system.
The reforms have been subject to prolonged criticism, with a warning being made by the County Councils Network in February that the changes would reduce funding for roads, schools and medical centres.
In the joint letter published earlier this month (9 June), detractors argued that it "remains unclear how IL rates and thresholds will sufficiently uphold the economic viability of projects, protect the delivery of affordable homes and homes for social rent and return enough money to fund the infrastructure growing communities need".
It pointed to consultation responses which said the reforms would make it harder for local leaders and communities to secure the benefits of new development.
In addition, IL charging schedules would be "significantly more complex than CIL ones and will be difficult for – chronically under-resourced – local planning authorities to develop", and once introduced, Infrastructure Delivery Strategies may create conflict with local plans.
"Alongside IL, councils and developers will still need to rely on S106 and CIL to some extent, which will not be improved by these reforms," the letter added.
Local government institutions such as the Local Government Association, County Councils Network, District Councils' Network, East of England Local Government Association, London Councils and the Mayor of London signed the letter.
The Royal Town Planning Institute, the Construction Industry Council, the Federation of Master Builders, the Home Builders Federation, the Land Promoters and Developers Federation, and other also signed the letter.
Adam Carey
