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Planning gain receipts set for strategic infrastructure

PlanningResource, 29 November 2007

The proposed community infrastructure levy would enable councils to charge developers for infrastructure not directly related to a development.

Under proposals in the Planning Reform Bill, charges will be based on requirements outlined in the local development plan, breaking the current link between a contribution and a particular scheme.

The tariff approach would be applied to all new residential and commercial developments and means more developers will face the levy as it will cover smaller schemes.

Just seven per cent of applications lead to contributions currently, according to Town and Country Planning Association chief executive Gideon Amos.

He added: "It is vital to have a broad-based charge to ensure that the 93 per cent of planning applications that contribute nothing are included."

RTPI policy director Rynd Smith said the CIL is far more likely to work than the other solutions but needs to be tested.

The tariff approach was pioneered in Milton Keynes.

Eversheds national head of planning Paul Wootton questioned whether it would work in more complex areas like the Thames Gateway, where large numbers of developers are involved.