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31st October 2018

Land value capture and the Budget 2018

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In the budget earlier this week the chancellor announced some changes in relation to land value capture. He announced proposals to allow combined authorities and joint planning committees to impose a Strategic Infrastructure Levy to finance strategic infrastructure. This would be a low level universal levy on development similar to the London Mayor’s levy which was used successfully to raise money for Cross Rail.

There is a to be a simplified power to raise an increased zonal CIL charge in areas of high land value uplift.

He has also proposed an end to the restrictions on pooling s106 contributions which were imposed by the CIL Regulations and which have proved to be unhelpful in the efforts to raise money for infrastructure.

This is in line with expectations for this budget. The tone of the debate on land value capture remains that no fundamental changes are needed and that s106 works well as long as the system is played fairly. There is a strong move towards discouraging developers and landowners from “gaming the system” or negotiating too hard with a threat of increased use of CPO with reduced compensation as the stick to encourage cooperation.

This is of interest to all who have land which may benefit from public policy decisions and is of course a hot topic in the Oxford –Milton Keynes- Cambridge Arc (as it is called in the budget).

For more information on this article please contact Deborah Sharples on +44 (0) 1223 532757 or click here to email Deborah.