Planners seek tax boost for infrastructure

Planners claim that the government's decision to return 70 per cent of planning gain supplement (PGS) revenues to councils falls short of infrastructure needs.

In his pre-budget report this week, chancellor Gordon Brown announced that a PGS would be introduced in 2009. Further consultations were launched containing more detail about how the proposed PGS might work.

RTPI policy and research director Kelvin MacDonald said: "We do need some top-slicing for infrastructure but 70 per cent might be a bit low." He added: "These announcements do little to add any clarity to this already misguided proposal."

An allocation of at least 80 per cent would be much closer to meeting the actual costs faced by councils, said MacDonald. British Property Federation director of planning Faraz Baber agreed that 70 per cent is probably too low.

The papers are available at PlanningResource.co.uk/doc.


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