Land which gets planning can suddenly be worth many times it's present value without planning. We all know that of course.
At present Councils can take a share in this value uplift via Community Infrastructure Levy (CIL payments) and via s.106 gains whereby planning conditions can be imposed. Typically a developer will be required to provide a percentage of social housing - can be up to 50%
These payments, taken together, are significant.
Clive Betts MP who chairs the Communities and Local Government Committee (CLG) does not think this is enough and he - ahem - wants an even bigger slice.
“Private landowners can take advantage of rises in land prices arising from public investment in infrastructure and the granting of planning permission for housing. Our inquiry will look at whether there could be changes to land value capture mechanisms to enable councils to take the opportunities to capture the significant uplift in land value that planning decisions and infrastructure projects often stimulate.
Does he not realize the more you tax a product or service - because that is what this is - the more expensive that product becomes, in this case land.
This is one of the reasons we have such rocket high land and property prices.
Surely if politicians exert yet greater payments they will only make the situation worse.
In the UK, land value capture is a way of monetising increasing land and property values and investing the cash into local infrastructure, but ongoing calls for a rethink of the methods used has sparked a Government inquiry. The inquiry, which has been launched by the Communities and Local Government Committee (CLG), is intended to examine the current mechanisms employed to capture any uplift in the value of land in relation to granting planning permission or local infrastructure improvements. It will also investigate any new or alternative methods that could be used going forwards.