New tax on houses set to fund expansion

April 14, 2005
A “roof tax” is set to fund an expansion of Milton Keynes and other areas marked for growth in the south. The scheme will require developers to pay the planning authority a tariff of about £20,000 for each house to get permission for new developments. The levy, between 5% and 10% on the cost of an average house, will be used to build schools, health centres, roads and other community facilities. English Partnerships (EP) wants to increase house building in Milton Keynes from 1,400 to over 3,000 a year. The tax could net the town more than £60 million a year. EP has suggested a level of £18,000 to £20,000 a house with developers paying some in advance and the rest on completion. The chief executive of Milton Keynes council, John Best, said: “Realistically a developer does not want to build, say, 400 odd houses and find there is no primary school. This will give them greater certainty.” (Guardian)

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