SEERA says yes to planning gain supplement

Jan. 25, 2006
Local councils should have the power to collect the proposed planning gain supplement (PGS), said the South East England Regional Assembly. SEERA welcomed the introduction of the tax, at a joint meeting of the Executive and Regional Planning Committees, but want to ensure it is used for the benefit of local communities rather than the Treasury. Councilor Keith Mitchell, chairman of the regional assembly said: "Infrastructure funding to support growth in the south east has been inadequate for many years. The proposed PGS could provide greater consistency and more resources than current Section 106 agreements, especially in the south east. But we want to cut out the middleman: rather than the Treasury treating the levy as a new tax and passing a percentage back to local communities, the collection responsibility should be given to the local planning authorities themselves so that local councils have control and can channel the investment where it is needed." He added: "The South East already makes the greatest net contribution to the Exchequer of any region. We have a buoyant development market, so this levy makes sense. But there must not be even the slightest risk of PGS being used to siphon off even more …

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