Town and Country Planning Association calls for 80% of proposed planning gain supplement to be returned to local councils.

The Town and Country Planning Association has demanded that 80% of the proposed planning gain supplement should go back to local councils.

Speaking at the Local Government Association Sustainable Communities Summit in Birmingham yesterday, TCPA director Gideon Amos urged MPs to reach a cross-party accord on infrastructure funding.

He put forward a four-point plan that he hoped all three major parties would endorse. The points are:

  • Extra tax revenue needs to be raised from high land value development (eg. through taxing greenfield development)
  • 80% of any revenues raised must return to the LA
  • Infrastructure must commence before tax is levied (gap funding may be needed to ensure timely investment in schools for example)
  • Government must commit to putting extra investment into cleaning up brownfield sites.
Amos said: "A secure funding mechanism is vital for the delivery of new schools, hospitals and transport to support sustainable growth.

"A long term strategy to fund infrastructure is a crucial element of responsible growth, despite the uncertainty created by frequent general elections and possible changes of government."

He added: "The planning gain supplement as currently drafted may not meet everyone's approval but there is growing evidence of the need to provide homes and to raise funding to meet local authority infrastructure costs.

"Providing revenues don't disappear into a Treasury pot, we believe there is scope for achieving cross-party agreement on a scheme that will work."