In June 2023, the Government’s Technical Consultation on the Infrastructure Levy closed. Among the controversial proposals, the Government suggested that the levy:
- Would be a charge that is effectively based on calculating final Infrastructure Levy liabilities on the gross development value of the development at completion.
- Would be paid by a three-step process for payment; the calculation of an indicative liability, the calculation and payment of a provisional liability, and the calculation and discharge of a final adjustment payment.
- Would result in the retention of section 106 planning obligations for many developments, albeit renamed “delivery agreements”.
In a controversial departure from historical proposals for reform of the system of developer contributions, the Government indicated that the levy could be spent on non-infrastructure matters such as social care and other “service provision”.
On affordable housing, the Government floated the idea of a new “right to require” to allow authorities to mandate the amount and type of on-site affordable housing on sites – reducing the scope for negotiation.
The icing on the cake was an indication that the new levy would be “drip fed” into the planning system by introduction over the course of a decade. It is not an understatement to say the Government’s proposals were not warmly received by the housebuilding industry. Local authorities, developers, housing associations, and charities have all indicated opposition to the Government’s proposed Infrastructure Levy.
If you want to have your say on the proposals but missed the Government’s consultation deadline, a new opportunity to contribute to the debate has presented itself. The All-Party Parliamentary Group (APPG) on Housing and Planning is encouraging developers and other stakeholders to contribute to its inquiry into England’s developer contributions system, which will run over the summer of 2023.
The APPG is calling on local government, housebuilders, social and affordable housing providers and other interested academics, charities and businesses to submit evidence about the Government’s proposed Infrastructure Levy and explore proposals to improve existing section 106 and Community Infrastructure Levy mechanisms.
APPGs are informal cross-party groups that have no official status within Parliament and provide a useful forum between MPs, Peers and external stakeholders to share evidence. APPGs can make useful recommendations to the government when they gather and present empirical research.
The deadline for response is 5 pm on Tuesday, 5 September, and the link to the APPG’s inquiry portal can be found by clicking this link.