Local councils should be able to collect the proposed Planning Gain Supplement themselves in order to ensure local communities benefit from infrastructure investment to support growth, says the South East England Regional Assembly.

Assembly members, at a joint meeting of the Executive and Regional Planning Committees (Friday 20 January), gave a cautious welcome to the Planning Gain Supplement - the Government's proposed infrastructure levy on new development.

Planning Gain Supplement could raise £1 billion a year nationally, with significant income potentially for the South East. However, Assembly members want to ensure that the benefits flow back to the South East. They expressed serious concerns that:

• Collection of the levy by the Treasury would risk income raised from the South East being diverted to national infrastructure or improvements in other regions or even to the Treasury generally
• Section 106 contributions alone should not be expected to fund affordable housing
• Introducing the new levy will create uncertainties and delays in the development process.

Cllr Keith Mitchell, Chairman of the Regional Assembly said: "Infrastructure funding to support growth in the South East has been inadequate for many years. The proposed Planning Gain Supplement could provide greater consistency and more resources than current Section 106 agreements, especially in the South East. But we want to cut out the middleman: rather than the Treasury treating the levy as a new tax and passing a percentage back to local communities, the collection responsibility should be given to the local planning authorities themselves so that local councils have control and can channel the investment where it is needed."

He added: "The South East already makes the greatest net contribution to the Exchequer of any region. We have a buoyant development market, so this levy makes sense. But there must not be even the slightest risk of Planning Gain Supplement being used to siphon off even more resources for investment elsewhere."

Contacts

Lesley van Dijk, PR Executive - 01483 555223

Heather Bolton, Communications Director - 01483 555220

Notes to editors:

Planning Gain Supplement proposal:

1. Modest proportion of the value uplift from planning provision
• Payable under a self-assessment regime administered by HM Revenue and Customs
• Payment of the levy would only be required when development commenced
• Development Start Notice will identify the chargeable person
• Applies to all developments, non-residential as well as residential, but not include householder applications for improvements to a dwelling
• Planning obligations would continue but would be scaled back and simplified
• The vast majority of revenues would be recycled within local communities to directly spend on infrastructure.
2. For further details on Planning Gain Supplement, please see the meeting paper of 20 January (Agenda Item 4)
3. The South East England Regional Assembly is the "voluntary regional chamber" for the South East. It was established in January 1999 to give a representative voice to the South East region, which covers Berkshire, Buckinghamshire, East and West Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire, and Surrey.
4. The Regional Assembly is made up of 112 members including elected councillors nominated by the region's local authorities and 37 representatives from other sectors of the community (including business, trades unions, education, housing, health, sports, culture, tourism, faith groups, environmental, community and voluntary organisations) as well as the New Forest National Park Authority.
5. The Assembly has three areas of core business:
• It is the representative voice of the South East, engaging and representing its member organisations and, through them, the wider public.
• The Assembly has a specific role under the Regional Development Agencies' Act 1998 to ensure the accountability of the South East England Development Agency (SEEDA) to the region.
• The Assembly has been the Regional Planning Body for the South East since April 2001. It has responsibility for proposing strategic planning and transport policies to Government.

Last updated: 21 August 2007