The government has published the following consultation, which runs for 12 weeks from 17/03/2023 until 09/06/2023:
- March 2023: Technical consultation on the Infrastructure Levy (link) (pdf print version of HTML webpage).
- The webpage (link) for the above consultation document includes the following information:
- "The Infrastructure Levy is a reform to the existing system of developer contributions – Section 106 planning obligations and the Community Infrastructure Levy - in England. This consultation will inform the design of the [Infrastructure] Levy and of regulations that will set out its operation in detail. A further consultation on the drafting of those regulations will be published in due course. Alongside this publication is a report on an earlier design of the [Infrastructure] Levy, commissioned by the Department for Levelling Up, Housing and Communities.".
- The "Executive summary" at the start of the above consultation document includes the following information:
- "The government wants to make sure that local authorities receive a fairer contribution of the money that typically accrues to landowners and developers. This will support funding for the infrastructure – affordable housing, schools, GP surgeries, green spaces and transport infrastructure to support connectivity that local communities expect to come with new development.".
- "To do this, the Levelling Up and Regeneration Bill ('the Bill') seeks to replace the current system of developer contributions with a mandatory, more streamlined, and locally determined Infrastructure Levy. The Bill provides the framework for the new [Infrastructure] Levy, with the detailed design to be delivered through regulations.".
- "The [Infrastructure] Levy will be charged on the value of the property at completion per square metre and applied above a minimum threshold. [Infrastructure] Levy rates and minimum thresholds will be set and collected locally, and local authorities will be able to set different rates within their area.".
- "This will allow developers to price the value of contributions into the value of the land and for [Infrastructure] Levy liabilities to reflect market conditions. It will also remove the need for planning obligations to be renegotiated if the gross development value (GDV) is lower than expected; while allowing local authorities to share in the uplift if GDVs are higher than anticipated.".
- Note: The webpage (link) for the above consultation document also includes the following document:
- "Exploring the potential effects of the proposed Infrastructure Levy".
Other sources of information:
- March 2023: Government press release - "New levy to make sure developers pay fair share for affordable housing and local infrastructure" (link).