Property industry lobbies parliament over planning permission levy

Representatives of the property industry have appeared before a parliamentary committee to make a case against some aspects of proposals for a levy on future planning permissions.

The Home Builders Federation (HBF) and the British Property Federation (BPF) both successfully lobbied against a planning gain supplement and the bill now includes a community infrastructure levy (CIL) instead.

In a joint statement issued after the hearing, the BPF and HBF said: “Industry leaders stressed that the starting point for CIL must be a local assessment of the infrastructure required to support planned development with consideration to what charge is appropriate and viable in that area.

“They called for clauses in the bill appearing to link CIL to changes in land values to be removed, since this approach would raise the same significant valuation problems associated with [planning gain supplements].

“Such proposals would undermine the workability and clarity of the CIL approach.”

The bill and its proposals for a CIL were introduced on 27 November. Both trade bodies are concerned that money raised from the levy would be used to replace existing public sector funds.

With the housing market slowing and concerns over future office-building - particularly in the City of London – emerging, the HBF and BPF are keen to see the levy used to stimulate future developments.

The two bodies asked parliament to provide assurances that cash raised through the CIL wouold be ring-fenced so that it is additional to existing state aid for infrastructure work.

The HBF and BPF want the actual amount of money to be levied to be set through local development frameworks.

Both bodies are concerned that at present the bill contains no reference as to how the levy should be set locally.