The introduction of a new infrastructure levy through the Levelling Up and Regeneration Bill has been opposed by local government leaders, with central government being urged to review the proposal.
Following a government consultation in March 2023, plans were established to charge a mandatory levy on new developments to fund infrastructure that supports development. This includes schools and transport links, as well as the delivery of affordable homes.
Thanks to this proposal, concerns surrounding Section 106 agreements have been raised as the new system would replace the agreements and Community Infrastructure Levy payments. This could then result in the delivery of less infrastructure and fewer affordable homes which would be a major problem for local authorities up and down the country.
Speaking about the levy and the consequences that it could have, Cllr Paul Marshall, Leader of West Sussex County Council, said:
“The infrastructure levy is something I strongly oppose as the expected changes would mean that West Sussex County Council would no longer be a statutory consultee on future planning development in our county.
“As a result of this, planning authorities will be able to ignore our requests for funding contributions for new education facilities, new roads, public transport, and active travel schemes – all things our growing communities need.
“I also fear that the levy would result in leaving communities with fewer new social and affordable homes, which is something I’m sure our residents will be concerned about for future generations.
“The county council’s strategic priorities include developing a sustainable and prosperous economy, delivering safe and effective transport options, and providing access to education, employment, and other service, so this levy needs rethinking. I have therefore added my signature to a joint letter asking for the opportunity to urgently review the proposals.”
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