Cllr Haveron says Planning Gain Supplement must benefit Local Communities (South West Surrey Liberal Democrats)

South West Surrey Liberal Democrats <info@swsurreylibdems.org.uk>

Cllr Haveron says Planning Gain Supplement must benefit Local Communities

December 5, 2005 1:21 AM

Responding to the announcement from Yvette Cooper, Labour's Minister for Housing and Planning, that the introduction of a planning gain supplement is likely to be included in Monday's pre-Budget report, Lib Dem Waverley Planning Portfolio holder Patrick Haveron said:

"If a planning gain supplement is to be introduced it must be done at a local level. The Chancellor must not be allowed to simply use revenue from this tax to bolster Treasury coffers. The supplement must be set locally by Waverley and collected locally to deliver improvements to local infrastructure.

"It is right in principle that the community should derive benefit where property developers see a large increase in the capital value of land, not as a result of their own efforts but due to the granting of planning permission.

"However the Treasury must be careful with how it frames the legislation as the track record of similar schemes in the past is far from impressive. Legislation has previously had to be abandoned because it has been ill thought out.

"If the Chancellor gets the Planning Tax wrong it could slowdown new house building and the development of much needed affordable housing. We must bear in mind that Waverley is not in a 'growth area' as designated by the South East Plan, so it is not likely to receive increased subsidies for housing. Yet as the demand for affordable housing in Waverley is massive - over 600 homes per year, this Planning Gain Supplement could be an excellent lever to realise funding for these homes, as well as other much needed infrastructure"