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Cooper explains how planning charge will work

Planning minister Yvette Cooper has spelled out some of the principles of the proposed new planning charge arrangements.

She stressed that local authorities will be able to apply standard planning charges for all new development in their areas to support infrastructure delivery.

She set out the main features of the proposed new planning charge regime:

  • subject to low de minimis thresholds, residential and commercial development will be liable to pay the planning charge.
  • where appropriate local authorities will be able to use planning charges to supplement a negotiated agreement. Negotiated agreements will still be necessary to secure affordable housing and to address costs related to the specific development site.
  • planning charges should be based on a costed assessment of the infrastructure requirements arising specifically out of the development contemplated by the development plan for the area (which comprises the regional spatial strategy and the local development framework), taking account of land values.
  • planning charges should include contributions towards the costs of infrastructure of sub-regional and regional importance identified in development plans.
  • planning charge policies in development plans will be tested through the development plan process, in consultation with developers, stakeholders and the community to ensure they support the viability of new development and levels of new housing required.

In a Commons statement the minister welcomed the fact that there was widespread backing for a planning charge approach from both the development industry and the local government community.

She told MPs: "As with other policies, once the planning charge has been introduced the Government will carry out an evaluation to ensure that its objectives – a step change in infrastructure provision to deliver more homes in more sustainable communities, funded by a fair contribution from development – have been achieved."

Read Yvette Cooper's written statement

Roger Milne

11 October 2007

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