The Liberal Democrats (LibDems) added further fuel to the pre-election regeneration debate today with the launch of a manifesto which promises to boost inner-cities with taxes on unused brownfield sites and greenfield site development.
Last week, The Tories launched their manifesto with promises to set up ‘Regeneration Companies’ and deliver £200m in tax breaks for regeneration schemes.
The LibDems’ tax – to be knows as Site Value Rating – would apply to the sites and not the buildings on them, as is the case with the existing Uniform Business Rate. The manifesto claims that this would “encourage rather than penalise those who develop inner-city sites”. The manifesto also commits the party to the introduction of a levy on greenfield development.
Foster told EGi News that this was an important part of the party’s three-pronged strategy to promote urban regeneration and discourage greenfield development. “The first part of the strategy is to reduce VAT on the repair and renovation of all properties and increase VAT on new build. Secondly we would give local authorities extra freedom to repurchase empty property, and thirdly impose a greenfield tax,” he said.
Foster also confirmed that the LibDems will back the Commonhold and Leasehold Reform Bill and the controversial seller’s pack legislation contained in the Homes Bill. He pointed out that the Leasehold Reform Bill is not mentioned in the manifesto because it was assumed that the bill would have become law by now.
“We support both Bills as steps in the right direction, but would like to see changes. We supported the seller’s packs, but we want a civil sanction instead of a criminal one. It’s totally wrong in this situation to impose criminal sanctions on people. Also, we would call for contracts to be signed earlier, as in Scotland. But if it is a choice between getting those changes made and seeing the legislation passed, we would be glad to see it go through unchanged,” he said.
Other policies included in the manifesto aim to:
1. Establish a one-stop regeneration grant system to streamline existing regeneration measures including Regional Selective Assistance, English Partnerships and New Deal for Communities. Simplify the applications and appeal process. Ensure that all regeneration schemes are in line with the aspirations of the communities they are designed to help by strengthening local democratic input into decision-making.
2. Support local markets, including farmers markets, by providing funds from single regeneration grants to regenerate local shopping areas and encourage flexibility in planning regulations for smaller outputs.
3. Promote decent and affordable housing.
4. Open up conveyancing to greater competition as in Scotland.
5. Take action to tackle gazumping and strengthen leaseholders’ legal rights by reintroducing a revised Homes Bill and Commonhold and Leasehold Reform Bill.
6. Involve tenants in the management of housing estates, and protect tenants against misuse of rent deposits.
7. Allow local authorities to specify the percentage of affordable housing for all new developments
8. Give local councils power to end the 50% rebate on council tax for second homes
9. Increase availability of affordable housing and require public and private landlords to bring empty homes back to use
10. Protect greenfield sites and encourage urban regeneration through partnership between local authorities and private enterprise.
11. Cut business rates through a Business Rate Allowance
12. Allow local councils to replace the Uniform Business Rate with a system based on the value of each site (Site Value Rating). This would encourage rather than penalise those who would develop inner-city sites. Also clean up brownfield and damaged wildlife sites using revenue from a greenfield development levy set by local authorities.
