Digby Jones, the director-general of the CBI, has lashed out at Government proposals to replace planning gain with a “development tax”.
The CBI has opposed the Government’s proposed tariff in its response to the planning green paper, which comes to the end of its consultation period today.
Jones said: “The changes to the planning gain system are a fly in the ointment of an otherwise excellent package of reforms. They are a backdoor way of making firms pay more for local government.
“They are nothing less than a stealth tax on regeneration and a major obstacle to companies that want to help councils create wealth and jobs.”
According to CBI estimates, the change will cost business an extra £2bn pa.
The Government proposes to apply a locally set tariff to all commercial developments above 2,153 sq ft (200 sq m) and all residential developments above 1,615 sq ft (150 sq m).
The Government’s proposals, which have won wide opposition within the property industry, would break the link between the impact of the scheme and amount that must be paid to the local authority.
EGi News 18/03/02
