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The Government has today published a summary of responses to the
consultation on the proposals by Kate Barker to implement Planning-gain
Supplement (PGS) as a means of releasing the land value uplift created by
the planning process to help finance the infrastructure needed to support
new housing and growth.
There was a broad acceptance amongst stakeholders of the need to fund
additional infrastructure and that capturing a portion of the land value
uplift created by the planning process was an appropriate source for this
additional funding. However, there were a variety of opinions as to the
right mechanism for achieving this.
Stakeholders wanted clarification on the use and distribution of PGS
revenues and a number of stakeholders objected to the PGS proposals and
favoured alternative means. Some were concerned at the complexity of the
proposed rules, together with the administrative burden and operating costs
whereas others felt that the model was too simple. Other concerns included
the potential reduction in land available for development given reduced the
reduced price for landowners, the impact on commercial viability of brown
field development.
Our view
In light of the fact that no clear proposals to take this suggested tax
forward have been made, it would appear that the Government is having
second thoughts about its implementation in this form and will need to
give further consideration as to how best achieve its policy objectives. |
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