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Government reserves right to cap new planning charge

PlanningResource, 28 November 2007

The government will be able to cap the rate of its new community infrastructure levy under proposals in yesterday's Planning Reform Bill.

The bill contains more details of the proposed replacement for the aborted planning gain supplement.

The new levy fund infrastructure related to new development after it begins.

The bill said: "The regulations may permit the secretary of state to set maximum amounts of CIL to be raised by a charging authority..."

It also said that new regulations could allow the minister to "direct a charging authority as to the application of money received by way of a CIL".

Rynd Smith, policy director of the RTPI said: "It sounds to some extent centralizing.

"However this might be being introduced in order to prevent some councils from setting the rate too high to block development."

The bill would also require councils to publish its levy rates for different types of development, plus its procedures for working out the rate.