Planning gain supplement will "strangle" supply - Davies

Dec. 1, 2005
Philip Davies has urged the chancellor to avoid introducing a planning gain supplement (PGS), which would further slow the housing market. On the eve of Monday’s pre-Budget report, the Linden Homes chief executive said: “With Britain in the grip of a housing crisis, the implementation of a PGS as being considered by the chancellor would only further strangle housing supply in the UK. “Housebuilders are already struggling to meet housing demand within the parameters of the current planning system. Introducing a PGS would only serve to put landowners off releasing land in order to avoid the charge and instead wait for a new government to come to power and change the legislation. “Land development taxes implemented previously, such as development gains tax in the 70s have always resulted in greatly reduced development activity and been abolished." Davies added: “In order to deliver a better functioning housing market, the government and local councils must strive to free up land for development, enabling housebuilders to respond to market demand. They should not be considering measures that will further restrict the supply of housing in the UK.”

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