Funding for infrastructure in county areas could be cut under new planning reforms, council leaders have warned.
They say spending on roads, schools, and medical centres could be reduced in the coming years if government reforms to contributions from developers are implemented.
The warning comes in a report from the County Councils Network (CCN) and research group Pragmatix Advisory.
They say the Government’s forthcoming infrastructure levy could be a ‘jack of all trades’, with little left over for infrastructure.
Under the present system contributions from developers help finance affordable housing as well as infrastructure, whilst the community infrastructure levy also raises funding for large-scale projects in some areas.
Councils say affordable housing is vital and the Government must ensure that there is funding left over in the new system to build infrastructure to support new homes.
Roger Gough of the County Councils Network said: ’Both local and national government recognise that the current developer contributions system is unfit for purpose so attempts to reform the system are admirable.
‘But as today’s report shows, the new infrastructure levy in its current guise could be a jack of all trades, potentially replacing one broken system with another.
‘We are concerned there could be even less money for infrastructure under the new system with these projects treated as an afterthought.’
A Department for Levelling Up, Housing and Communities spokesperson said: ‘The new Infrastructure Levy is designed to deliver as much affordable housing as the current system.
‘It will put power in the hands of councils to deliver what their communities need, by introducing a “Right to Require” so that councils can determine how much of the levy developers pay through the delivery of on-site affordable housing, and how much through cash. Developers will not be able to re-negotiate figures downwards.
‘We understand the levy is a significant change, which is why we will be gradually rolling out the new system to make sure we get it right. We will shortly launch a consultation on the levy’s design.’
