Prominent planning experts expect proposals to replace section 106 agreements with a tariff system to be dropped from the planning green paper later this month.
The suggestion that the agreements be replaced by a tariff system of cash payments caused dismay as the sector was just getting to grips with section 106, which covers the provision of social housing in new developments. Tariffs did not ensure that developers' money would go to social housing, so they were considered the worse option.

Planning consultant Robin Tetlow said: "The comments that have been made in recent months about tariffs have shown a consensus has built up that they would be unworkable and wouldn't contribute any more affordable housing [than section 106 agreements]. The approach wouldn't work on brownfield sites, as they tend to be smaller and have a number of other complications." Tariffs will most likely be forgotten about, he said: "There would be no political mileage in consulting a lot of people and then ignoring them."

Housing and planning minister Lord Rooker is expected to announce the results of the consultation this month. A senior civil servant from his department has already hinted tariffs would be scrapped if they proved unpopular during consultation (HT 20 June, page 7).

Roger Chapman, planning policy officer for the Association of London Government, said: "I am expecting serious messages about resources for the planning system and I wouldn't be surprised if tariffs were – if not dropped – then quietly put on the side for a while. It seems the government itself is finding it hard to work out how the system would work."

The comments were made in the light of a speech made last week by the chancellor of the exchequer, Gordon Brown, about the need to "take seriously the case for further new housing development" and "radically revamp the rules and resources to speed up planning decisions".

Neither Tetlow nor Chapman expected the other recommendations of the green paper to meet with many objections. Tetlow said: "Affordable housing was already the driving force behind the paper. Enhancing the role of planning guidance and simplifying the development planning system will continue."

Source

Housing Today