The RICS is calling on the DETR to commission independent research into the possible impact of different types of fiscal measures on sustainable development, landowners, developers and buyers.
The Institution is concerned that the government has no evidence against which to gauge responses to its planning consultation paper on the possible introduction of development taxes, impact fees and tradeable permits.
The RICS fears that, in the face of growing political pressure for a tax on greenfield sites, John Prescott may push through a greenfield tax without knowing what effect it would have on the supply of new homes – particularly in areas like Berksire and Buckinghamshire which have few brownfield sites.
RICS President Peter McKendrick is warning that unless mitigating measures are introduced, greenfield taxes could have adverse economic consequences, with the heaviest and worse effects on schemes at the margins of profitability.
McKendrick said: “Greenfield taxes deserve to be examined but there should be no headlong rush to embrace them. Attempts to tax development land since the war have consistently failed either to raise the level of revenue expected or realise policy objectives. There needs to be rigorous research into the likely operation and impact of such taxes before any decisions are taken.”
The Institution is also calling for a detailed audit of derelict and vacant sites in order to provide better information about the capacity of the urban environment to absorb new development.
EGi News 28/01/98
