PLANNING GAIN SUPPLEMENT WOULD BECOME PART OF NATIONAL TAXATION SYSTEM SAYS POS

Date: 7/2/2006

The Planning Officers Society (POS), in its response to the Planning Gain Supplement (PGS) consultation, says it is opposed to the national taxation system that PGS as currently outlined would become.

POS believes the alternative option of a Tariff approach would be far preferable as it would:

• Help local communities better share the benefits and manage the impacts of growth
• Reduce the delay involved in sorting out Tax payments, and assist speeding up the Planning system
• Produce a Plan-led funding system reflecting justified actual infrastructure requirements rather than a further tax 
• Be fair, transparent, more flexible and more efficient in capturing appropriate planning gain
• Finance infrastructure to support growth, including provision of affordable housing to help deal with the Country’s affordable housing problems
• Produce a more flexible value capture that does not distort decisions between Greenfield & Brownfield development which can respond to market conditions.

In light of these concerns on matters of principle, and as the consultation does not provide sufficient detail at this stage, Geoff Cross for POS said “We agree that details would need to be further discussed. For example, thresholds would probably be needed at the level of a new dwelling or equivalent for commercial development. We feel that valuation self certification will involve the Revenue in costly complex valuation checking and duplication of administration with LPAs which would not occur with the Tariff alternatives.”

The Society has offered the ODPM its expertise in discussing stakeholder engagement, the details of valuation arrangement, payment arrangements, development start notices and administration once decisions in principle have been taken following the consultation.