The government is working on plans to reintroduce its planning tariff policy, despite claims that it had been scrapped.
The controversial proposals, dubbed a “stealth tax” by many in the industry, would replace negotiated site-specific planning obligations – known as section 106 agreements – with a standardised tariff.
Last month, the property industry and business lobbyists welcomed the news that the policy had been dropped from the package of reforms of the planning system.
But it is understood that the Office of the Deputy Prime Minister has now commissioned GVA Grimley to consult on the policy and draw up proposals as to how the tariff concept could be reintroduced.
The government had said that it would “streamline” the existing system, but sources at the ODPM said the government was “still committed to a tariff system” and had merely put the policy “on hold”.
The tariff is likely to be based on floorspace increases and will be levied on all but the smallest developments to pay for “community benefits”, such as transport infrastructure and affordable housing.
However, the ODPM is understood to be looking at ways to make the tariff more site-specific.
High-ranking officials at the ODPM have also been in discussions with the British Property Federation.
Chris Morley, head of planning at the BPF, said: “It is encouraging that the government is going to talk to the industry before taking it forward. What we are more worried about is that the government may try to introduce a tariff by the back door.
“The government is alive to the fact that a healthy property industry is necessary to meet its objectives and that a poorly conceived tariff system would harm our industry.”
The government had originally wanted to draw up legislation to introduce the tariff in November, but the plans had to be put on ice because the formula proved to be “too complex”. Last months policy statement on planning stated that legislation would not be used to change the system.
Fears had been raised that the ODPM had been “deliberately vague” about long-term plans for planning gain. The policy statement said “many of our objectives can be delivered without legislative change”.
EGi News 05/08/02
