Inside Housing – Home – Housing associations join dozens of organisations in urging the government to drop infrastructure levy

Under the new levy, councils would set rates, and the amount developers have to pay would be calculated once a scheme is complete, instead of when the site is granted planning permission. 
Local authorities would also be given a new “right to require”, which the DLUHC said would stop developers from negotiating their affordable housing contributions down, as they would have a legal obligation to meet the amount set by the council.
Roger Gough, housing and planning spokesperson for the County Councils Network, said “attempts to reform the present system are laudable”, but the proposed levy “could end up being the worst of both worlds: resulting in less funding being made available for vital infrastructure, less affordable homes being delivered than before and impacting on the viability of development”.
“The upheaval of introducing a new system will create even more uncertainty in a system which is already not firing on all cylinders,” he added.
The Infrastructure Levy was a key topic of discussion as MPs launched an inquiry into social housing finance in parliament on Monday. Tony Crook, professor emeritus of town and regional planning at the University of Sheffield, said the complexities of the new levy were “really rather horrendous”, adding that “it might be much better to retain and reform Section 106”.
James Prestwich, director of policy at the Chartered Institute of Housing, called the new levy a “disruptive change” that would affect local authority capacity, adding “it’s not too late for reform of Section 106”.
Responding to the letter, a DLUHC spokesperson said: “We know communities want housing developments to include key infrastructure such as GP surgeries, schools and transport links.
“That is why we have consulted on the new infrastructure levy which will ensure we are delivering affordable housing alongside vital infrastructure. We are carefully considering the responses to this consultation and will respond in due course. Any changes will be gradually rolled out to make sure we get it right.”



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