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News Release from: The Town and Country Planning Association | Subject: Tariffs For Development Introduced
Edited by the Buildingtalk Editorial
Team on 11 November 2003
Tariffs For Development Introduced
The TCPA has today welcomed the proposed reforms to planning obligations providing greater certainty for developers and local planning authorities.
The TCPA has today welcomed the proposed reforms to planning obligations, claiming that they represent an opportunity for communities to benefit from the proceeds of development, while providing greater certainty for developers and local planning authorities "When it comes to taxes and charges on development, stealth cannot be right", TCPA Director Gideon Amos said today
This article was originally published on Buildingtalk on 14 Oct 2003 at 8.00am (UK)
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"A tariff system introduces openness and transparency to the murky process by which developers pay for some of the impacts of development".
Amos warned, however, that very tight guidance would be needed so that local planning authorities applied a consistent method of calculation of the tariff.
"Some local authorities would hope to 'under-bid' its neighbours in order to attract investment," he said, "whereas others would find it tempting to set a very high tariff in order to repell development.
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We don't want to see a parallel planning world in which tariffs are used to control the use of land." "We support the principle that communities should benefit from the proceeds of development.
A tariff system is a fair and open way of achieving this, in whole or in part" said Amos.
"The risk is that if a particular tariff is considered excessive by landowners, land may be withheld from the market.
Compulsory Purchase powers would be needed to counter this problem." The TCPA is also concerned that the proceeds from the tariffs will be greater in more prosperous parts of the country.
"While, in the case of affordable housing the need for additional units tends to be greater in prosperous areas, poorer areas often face a similar need for expenditure on stock improvement, land reclamation, infrastructure, social facilities and environmental mitigation.
The proposals therefore may increase financial inequity between areas", said Mr Amos.
One way of overcoming this would be for a 'top slice' of the tariff income to go to a national pool - a Community Chest - for distribution to areas of market failure.
The Government proposals include the idea that developers should choose whether to stick to the existing Section 106 negotiation process, or whether to elect for the new tariff, on a case by case basis.
"This appears superficially attractive" said Gideon Amos, " but is a legal minefield.
How could a local authority set a tariff when it would have no idea how many developers would subscribe?" he asked.
The consultation also proposes to allow local planning authorities to widen the scope of what they can legitimately ask developers to pay for in planning obligations and tariffs, by setting out criteria in the development plan.
This is a welcome move.
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