A proposal that councils should increase planning fees charged to developers by 17% in 2005/6 does not go far enough, the Local Government Association has warned.

The increase, which is based on the fees levied in 2003/4, would raise an extra £30m for councils and could be used to cover the costs of processing planning applications.

But the chair of the LGA’s environment board, David Sparks, said the increases were too low.

Responding to an ODPM consultation on the increases, which closed yesterday, he said: “The LGA will be calling for higher maximum ceilings on fees to better reflect the true costs of handling larger applications.

“It will be seeking a more sensible fee structure to reflect the effort made by local authorities on different types of applications.”

Further rises in planning fees are expected in the longer term, because the government grant councils currently receive to help cover planning application costs is to be scaled back.

The ODPM’s proposals would also allow local authorities that meet government targets for handling major applications within a set deadline to charge 10% higher fees.

But the British Property Federation is concerned at the idea that better-performing authorities could access more funds.

In a draft copy of its response to the ODPM consultation, it said: “While we understand that planning development grant is given primarily on the basis of performance, the British Property Federation’s view is that under-performing planning authorities … should be given the same access to the optional charge if it can clearly demonstrate betterment in service delivery to the client.”