[Imc-cymru] Planning consultation arguments

[Stude]

I am preparing a consultation response for my authority to the current 
Planning Gain Supplement (PGS) consultations 
http://www.communities.gov.uk/index.asp?id=1504924 
<http://www.communities.gov.uk/index.asp?id=1504924>
 
Are you aware of these? It strikes me that they could have very 
significant impacts on low impact developers.
 
In short, PGS is a new centrally administered tax on the uplift value of 
the grant of planning permission, which would partially replace planning 
obligations (s106), although these would continue to exist in a 
scaled-back form. It is the latest attempt at taxing betterment value. 
Introduction is proposed no earlier than 2009. The level of PGS is to be 
'modest' and has yet to be confirmed, but figures of 10-20% are mooted. 
It would be payable at commencement of development.
 
I am concerned that this could have devastating effects on the viability 
of not-for-profit, socially beneficial and shoe-string projects 
including low impact developments. How could they afford a PGS payment, 
especially if no future property sale is envisaged to realise a 
financial return? The charge could be particularly high if the project 
involves a residential element.
 
Going ahead without paying PGS could lead to the issue of a PGS Stop 
Notice, making further development unlawful until the charge is paid. It 
is in effect introducing a parallel enforcement system, which could be a 
double whammy for low impact developers. Moreover a PGS Stop Notice 
could be issued for a commenced development whether or not it has 
planning permission (see Chapter 7 of the 'Paying PGS' document). While 
LPAs use their discretion in enforcing breaches of planning control, 
there is no mention of this for PGS, so it could hit every LID case and 
result in their development being unlawful, plus financial penalties 
(which would pass with the ownership of the land until paid) and 
ultimately prosecution.
 
The current proposals only contain the following exemptions, taken from 
the 'Paying PGS' document:
/"Q. Will all developments need a PGS Start Notice?/
/A. PGS will not apply to small-scale home improvements. Such 
developments will/
/not therefore require a PGS Start Notice, even where planning 
permission is/
/necessary. This will exclude more than half of planning permissions 
granted./
/Development under the General Permitted Development Order 1995 that does/
/not require planning permission will not need a PGS Start Notice. The/
/Government is still considering thresholds for small-scale non-residential/
/development."/
The House of Commons Communities and Local Government Committee 
recommended in Nov 06:
/'21. We find no grounds for PGS exemptions or discounts for 
developments of/
/marginal viability. (Paragraph 41)'/
To which the Government respond:
/'The Government welcome this recommendation. Maintaining a broad scope 
with a/
/wide base would enable PGS to be levied at a modest rate with a reduced 
risk of/
/creating economic distortions or avoidance opportunities.'/
 
While betterment is a laudable principle, I think it would be worth a 
Chapter 7 consultation response to seek exemptions from PGS liability 
for low impact developments, charity projects and more generally 
developments of the highest sustainability standards. My work response 
can't cover LIDs.
 
The deadline is 28th Feb 07.