Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 8
8
Rejected
Make regulations allowing local authorities to include plan-making costs in planning fees.
Recommendation
Once the Planning and Infrastructure Bill receives Royal Assent, the Secretary of State must make regulations to allow local planning authorities to take into account the cost of local and regional plan-making when calculating local planning fees. Local planning authorities and Strategic Authorities should be allowed to spend these contributions from planning fees on staffing and resources to deliver their core functions and improve local plan coverage. (Recommendation, Paragraph 49)
Government Response Summary
The government rejected the recommendation to set indicative benchmark land values nationally, arguing that it would not account for regional variation, but are consulting on testing viability at the plan-making stage using a standardised scenario for greenfield, Green Belt land.
Government Response
Rejected
HM Government
Rejected
51. In 2024, the Government consulted on setting indicative benchmark land values for land released from or developed in the Green Belt. The Government does not believe a national benchmark land value would sufficiently account for variation in land values or types of land and, if set too low, would disincentivise landowners from bringing their sites forward. 52. Nonetheless, there may be instances where further guidance could be beneficial to support compliance with the Golden Rules, as well as plan deliverability. This may be particularly true of greenfield land, which is typically more homogenous than brownfield land in terms of its existing uses and abnormal costs. The Government is therefore seeking views through the consultation on the revised NPPF, which opened in December 2025, on the potential benefits of testing viability at the plan-making stage using a standardised national benchmark land value scenario of 10 times Existing Use Value for greenfield, Green Belt land. The purpose of the test would be to send a clear signal and ensure that plan-makers (and viability practitioners working on their behalf) have a clear and strong justification should they wish to adopt a higher benchmark land value. 53. Annex B of the NPPF consultation document contains wider questions relating to standardised inputs into viability assessments, including the determination of benchmark land values. The consultation seeks views on landowner premiums and any circumstances in which a premium, or the usual premium, might not be required, as well as any impact that may arise should a change be made to guidance (for example, any unintended consequences on encouraging land supply to be brought forward). We are also seeking views on whether guidance should set out any specific cases in which alternative use value would not be appropriate, and any further steps the Government should take to ensure non-policy compliant schemes are not used to inform the determination of benchmark land values in the viability assessments than underpin plan-making. We are also seeking views through the consultation on whether a benchmark land value for rural exceptions sites would support delivery. Reforms to the Community Infrastructure Levy (CIL)