Councils raise concern on planning reforms

Councils in England have warned that spending on infrastructure including roads and schools could decline in the coming years if government reforms to developer contributions are implemented.

A joint report by Pragmatix Advisory and the County Councils Network (CCN) argues that the forthcoming Infrastructure Levy, set to replace the existing developer contributions system, could be a ‘jack of all trades’, with not much remaining for infrastructure.

Currently, Section 106 (S106) contributions from developers help to finance affordable housing in an area and site-specific infrastructure. However, the new infrastructure levy will be spent on a wider array of things including affordable housing and local council services.

Councils are warning that affordable housing is needed, but there must also be enough money left over to build the infrastructure to support these homes.

The report found that infrastructure worth £1.3trillion could be required over the next fifteen years as a result of projected household growth.

Cllr Roger Gough, Housing and Planning Spokesperson for 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.

“With average house prices in rural county areas the highest in the country outside of London affordable housing provision is vital but the government must ensure there is funding left over for vital infrastructure and public services so we can grow and create sustainable communities.

“Today’s report sets out a number of key recommendations to ensure that the new system has a greater role in capturing infrastructure funding. County councils should have a prominent and formal role within any redesigned system and the clauses of the bill which permit the levy to be used for purposes other than infrastructure or affordable housing should be removed.”

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