<em>Yet another short-term, short-sighted proposal from the Minster of Planning Chaos. This government has a lamentable track record of top slicing local government funding – robbing Peter to pay Paul. They now appear to have turned their sights on to privately sourced funds, as a way of bribing communities in to accepting development.
Developers only have so much funding to put into such pots. Taking 25% of any CIL that might be in place, simply means that the funds that should be accumulated to the benefit of the community as a whole will, under these proposals, be partly dispersed amongst pockets of the community, potentially to the long term detriment of all.
New plans to encourage communities to build more homes will be unveiled today by planning minister Nick Boles.
Mr Boles is expected to announce a community infrastructure levy, which will replace Section 106 agreements and raise around £1bn a year from property developers.
Communities that draw up neighbourhood developments and secure the consent of people through a referendum will get up to 25% of the money raised through the levy. The money will be paid directly to town or parish councils.
Neighbourhoods with no development plan will still receive 15% of the levy from developments in their area.
‘The Government is determined to persuade communities to accept more house building by giving them a tangible share of the benefits it brings,’ said Mr Boles.
‘By undertaking a neighbourhood plan that makes space for new development, communities can secure revenues to make the community more attractive for everyone.’
The National Housing Federation’s head of homes and land, Rachel Fisher, said: ‘New developments should take into account the needs of local people, so we welcome the commitment to giving 25% of community infrastructure levy (CIL) money to neighbourhood groups. But it’s crucial that this does not come at the cost of delivering affordable homes.’