Local authority leaders, developers, charities and others have written to levelling up secretary Michael Gove criticising the Government’s proposed infrastructure levy.
They say the proposed reform, which would allow councils to impose a levy on developers based on the estimated final value of a scheme, could mean fewer affordable homes being built and less money for roads, health centres and schools.
The County Councils Network (CCN), the District Councils’ Network (DCN) and the 28 other organisations who signed the letter are calling instead for reform of the developer contributions system.
The District Councils’ Network (DCN) describes the Government's plan as 'unworkable'.
It says the levy, which is supposed to increase the number of affordable houses built and the amount of infrastructure supplied for new developments, is likely to have the opposite effect and would 'heap financial risk on local government'.
DCN’s Barry Wood said: 'While we support the principle of local planning authorities being allowed to borrow against the proceeds from the infrastructure levy, what has been proposed would [place] significant financial risk on councils.
'Local service users will be the losers if a development takes longer than expected to be completed or a developer goes bust.
'It is also essential that the new system provides money for genuine essential infrastructure – the parks and green spaces, play areas, schools, cultural facilities, transport facilities and health centres required by new developments – and should not be used as a cash cow by other services.'
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