Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 22
22
Acknowledged
Paragraph: 101
Infrastructure Levy amendments do not guarantee existing affordable housing delivery levels
Conclusion
We welcome that the Government has tabled amendments to the Levelling-up and Regeneration Bill to strengthen the duty of local authorities to deliver at least as many affordable homes under the new IL as they do under the current system (rather than simply “have regard” for this). However, the proposed amendments will not guarantee that local authorities will deliver the same levels of affordable housing as they do under the current regime. The amendments would require local authorities to “seek to ensure” they deliver the same levels of affordable housing, but not if this would render development economically unviable. Therefore, there is still a risk that the new IL may not deliver as many affordable homes as the current regime.
Government Response Summary
The government acknowledges the committee's concern regarding affordable housing delivery under the new Infrastructure Levy, committing to a "Test and Learn" approach and a parliamentary report to monitor the Levy's impact and allow for necessary adjustments.
Paragraph Reference:
101
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.