Thursday, November 15, 2012

Planning fees to rise FIFTEEN PERCENT

Planning Costs and Fees: Final Report

Herein you discover the true rate of inflation. I bet this will not form part of the CPI or RPI. On top of this, the Mayor of London is imposing a Community Infrastucture Levy (CIL) of £35 per square metre of new development, and all the Borough's and Districts are planning their own Levy which will add tens of thousands to the cost of building new homes. Welcome to a hell hole Soviet economy.

Posted by libertas @ 08:40 AM (1318 views)
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5 thoughts on “Planning fees to rise FIFTEEN PERCENT

  • Rubbish Libertas.

    The money from CIL is used to fund the infrastructure which will be required by those who move into new developments. CIL is nothing more than a much more responsive and evidentially based system than the blunt and uncertain approach currently employed via S106 agreements.

    As ever reality is more complicated than libertarians and free-staters care to admit.

    Developers build then they cut and run. They care not for the communities in which they impose their usually poorly conceived schemes. Meanwhile the tax payer is expected to pick up the tab for additional school places, transport infrastructure, green infrastructure, policing costs and waste disposal etc brought about by the increased demand for these services.

    Furthermore CIL offers developers more certainty. Instead of relying on individual determinations the developer now knows from the outset precisely what is expected and can therefore plan accordingly.

    You want to build a 1,000 homes? Fine, then you can bloody well pay for the additional school places for all the children who are going to live there as well!

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  • Better to pay an ongoing service charge for the infrastructure rather than make a pretense that such a charge will pay for it upfront .

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  • Interesting point Stiebs, although…

    While I want to see developers prevented from passing costs they should bare onto the tax payer I don’t want to put them out of business.

    The charging structure for CIL is worked out in great detail and based on long term infrastructure planning via the strategic planning regime.

    Local authorities prepare an Infrastructure Development Plan (IDP) as part of the evidence base for their Local Development Framework (LDF). This is then used to inform the development of a CIL charge which should be reviewed regularly.

    The idea is to create a regime where infrastructure, development and long term planning are automatic and not just an after thought as is the case at present. Offcourse just as 10 years of hard work by countless professionals across the Country is begining to bare fruit the Tories are going out of their way to de-construct the legislative framework that underpins it again.

    Short termist, greedy, inconsiderate, unthinking fools that they are.

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  • Gonzilla, your are an idiot or have a short memory.

    Developers already pay Corporation Tax, employee tax, NI, carbon levy, landfill levy, etc. etc. And, unless you forgot, we pay near on 75% of our wealth in taxes to fund said infrastructure, and it used to cover everything we need as a country.

    The truth is that the government squandered said money on sensless genocides in the Middle East, etc. and is spending too much on debt financing and has run out of cash, so they have decided to shake down one of the few remaining profitable enterprises. This will cause developers to move abroad for yield and simply stop building things.

    Incidentally, I am a planner, and I now for a fact that major developers, unlike small developers, can negotiate discounts or elimination of CIL for major urban extensions. As a result, like most other taxes, corporations use it to destroy their nimble competition.

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