Source · Select Committees · Housing, Communities and Local Government Committee

Recommendation 21

21 Accepted in Part Paragraph: 100

Outline ‘test and learn’ process and timeline for piloting the new Infrastructure Levy regime

Recommendation
Whilst piloting the new IL is a sensible approach, the Government must outline from the outset exactly how the ‘test and learn’ process will work and set out a limited timeline. The Government should make adjustments where appropriate as part of ‘test and learn’, to ensure that the new regime is simpler, delivers sufficient funding across the country, and delivers more affordable housing than the current regime.
Government Response Summary
The government commits to further consultation and a "Test and Learn" approach for the Infrastructure Levy, stating that necessary changes can be made and further details on the process will be provided as policy design progresses, but does not specify a limited timeline from the outset.
Paragraph Reference: 100
Government Response Accepted in Part
HM Government Accepted in Part
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.