PRESS RELEASE

FOR IMMEDIATE RELEASE

WEDNESDAY 6 DECEMBER 2006

NEW TAX ON INCREASED LAND VALUES ENCOURAGING – BUT MUST FUND LOCAL INFRASTRUCTURE

Welcoming the Chancellor’s promise today, that new tax revenues will go to local authorities to fund much needed community infrastructure, TCPA Chief Executive Gideon Amos said:

“Zero carbon developments, schools and other infrastructure all cost money. It is only fair that part of the 300% land value increases created by planning permission is handed back to the local community.

“However, it must be a local levy. The TCPA has scored a major victory in insisting that at least 70% of the revenue – worth possibly up to £1billion – will now be handed back to local Councils.

“There are signs of widening support for PGS with Conservative councils in the southeast now on record, like the TCPA, in supporting a local form of this levy.”

The TCPA’s support for the measure will finally depend on the rate of tax to be levied. This should be a modest level - of around 20% - to ensure development is not held back.

Since developers will not always want to develop as many homes as are needed - with or without the new tax - it is crucial that more resources are invested in releasing public sector land for new homes and communities.

The commitment to increase funding (from £2billion in 1997 to £8billion in 2007) for affordable housing in the Chancellor’s pre-budget report was also broadly welcomed by the TCPA today.

Gideon Amos said:

“More land and resources are needed to deliver more than 200,000 new homes each year to meet the needs of a growing and ageing population and to address the need for sustainably built affordable homes.”

The TCPA has been campaigning for new environmental standards on new and existing homes, and welcomed the Government’s ambition announced today that all new homes should be carbon zero within a decade, and that these will be exempt from stamp duty.

Gideon Amos added:

“We look forward to seeing the detail on carbon zero new homes, especially the time table for delivering this in light of the urgency of climate change.

“Government must also persuade the energy industry to help us reconfigure energy supply to the existing housing stock with community based mini-grids providing local renewable energy.”

- Ends -

Notes to Editors

1. The Town and Country Planning Association (TCPA) is an independent campaigning charity calling for more integrated planning based on the principles of accessibility, sustainability, diversity, and community cohesion. The TCPA puts social justice and the environment at the heart of the debate about planning policy, housing and energy supply. We inspire government, industry and campaigners to take a fresh perspective on major issues including climate change and regeneration. Media contact Kirsten Gogan 0207930 8903 kirsten@tcpa.org.uk