Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 20
20
Acknowledged
Paragraph: 99
New Infrastructure Levy risks being more complicated than current planning finance system
Conclusion
It is not clear that the new Infrastructure Levy (IL) as it is currently proposed will be swifter and simpler for local authorities to administer than the current CIL/Section 106 agreement regime. The potential for multidimensional charging schedules with many different rates in each local authority, as well as the continued need to negotiate Section 106 agreements in parallel, unnecessarily risk making the new IL more complicated than the current system.
Government Response Summary
The government acknowledges concerns about the complexity of the Infrastructure Levy, committing to further consultation, a 'Test and Learn' approach, and parliamentary reporting to ensure the reforms are effective and achieve their aims.
Paragraph Reference:
99
Government Response
Acknowledged
HM Government
Acknowledged
The Government recognises the need to get these significant reforms right. That is why we committed to undertake a further consultation on fundamental design choices before developing Infrastructure Levy regulations. Through further consultation and engagement, and through a “Test and Learn” approach the Government will seek to ensure that the Levy achieves its aims and that it is implemented carefully. This will be supported by amendments the Government made to the Levelling Up and Regeneration Act, which require the Secretary of State to lay a report before each House of Parliament, setting out the effect of the Infrastructure Levy on the provision of infrastructure and affordable housing. This includes whether charging the Infrastructure Levy has resulted in more or less affordable housing being available than would otherwise be the case. This will allow for the scrutiny of the Levy as part of our Test and Learn approach, and for any necessary changes to be made to ensure that the Levy is able to successfully deliver on its aims. The Government will set out further details on the ‘test and learn’ process as policy design progresses.