Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 23
23
Accepted
Adjust Infrastructure Levy or provide alternative funding if affordable housing delivery falls short
Recommendation
If the new IL falls short of delivering sufficient funding for local authorities to deliver at least as many affordable homes as the current regime, then the Government should make adjustments where appropriate as part of ‘test and learn’. Failing this, the Government should consider other ways of providing funding to local authorities to make up the shortfall. (Paragraph 102) National Development Management Policies
Government Response Summary
The government commits to a "Test and Learn" approach and further consultation on the Infrastructure Levy, supported by a parliamentary report on its impact, which will allow for scrutiny and necessary adjustments to ensure it delivers sufficient funding and affordable homes.
Government Response
Accepted
HM Government
Accepted
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.