Using Land Values to Fund Infrastructure: Will Statutory Planning Changes Work? (2743) |
| Andrew McNab (United Kingdom) |
Dr Frances Plimmer
Senior Research Officer
The College of Estate Management
Whiteknights,
Reading
RG6 6AW
United Kingdom
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| Corresponding author Dr Frances Plimmer (email: f.plimmer[at]btinternet.com, tel.: +44(0)1189214667) |
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| [ abstract ] [ handouts ] [ handouts ] |
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Published on the web 2008-03-21
Received 2008-01-31 / Accepted 2008-03-14 |
| This paper is one of selection of papers published for the FIG Working Week 2008 in Stockholm, Sweden and has undergone the FIG Peer Review Process. |
FIG Working Week 2008
ISBN 978-87-90907-67-9 ISSN 2307-4086
http://www.fig.net/resources/proceedings/fig_proceedings/fig2008/index.htm
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Abstract |
| The UK government has set a target of constructing 3m new dwellings by 2020 and funding is required to provide the necessary infrastructure to support this proposed development.
Initially, the government consulted on a Planning-gain Supplement (PGS) which would impose a levy at a “modest” rate on the uplift in value which resulted from a grant of planning permission. Following consultation, PGS has been abandoned and a new Statutory Planning Charge (SPC) proposed.
The SPC will be negotiated by individually by representatives of local planning authorities, alongside the existing s. 106 obligations which also raise funds for infrastructure but only that which can be said to be relevant to the specific development. What is different about SPC is that the revenue will be hypothecated to support infrastructure for the locality in which the development is based, with a portion of the revenue going to larger regional projects and that it seems to be well supported by the property-based industry representatives.
The situation in the devolved administrations of Northern Ireland, Scotland and Wales in unclear, and concern has been raised about the general ability of local planning authority officials (who may not be trained and experienced in commercial negotiations) to raise an appropriate and sufficient level of revenue from developers. Certainly there is evidence that some local planning authorities are more successful than others.
This paper will review the background to the taxation of betterment and the introduction of SPC, report on how the new tax is to work and speculate on its prospects for success.
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| Keywords: Land management; Valuation; Real estate development; Property taxes |
