Under the proposals, the amount developers will have to pay will be calculated once a project is complete, instead of at the stage when planning permission is given. This is designed to make sure that councils benefit from increases in land value, which can be significant for large developments that take years to complete.
The infrastructure levy, which will replace section 106 contributions for most developments, will prevent developers from negotiating down the amount they contribute to the community when they bring forward new projects, the government says.
Councils will also be given powers to set rates themselves.
Secretary of state for levelling up, housing and communities Michael Gove said: “Central to our levelling up mission is ensuring local communities can take back control. The infrastructure levy will do just that – giving local leaders the tools to bring forward more affordable housing and the transport links, schools and GP surgeries their communities need.”
He added: “It will also speed up delivery and put an end to lengthy negotiations with developers seeking to shirk their responsibility to provide for local people.”
A small number of councils will implement the levy initially, testing how it operates in practice, before being rolled out more widely, to make sure the new approach works.
The consultation runs until 9th June 2023 and can be found here.
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