Poole Borough Council leads the way to charge levy

Poole Borough Council is leading the way to be the first planning authority in Dorset to collect the Community Infrastructure Levy.

The Inspector who held an Examination in Public which lasted just one day has found, with one small exception, that the Charging Schedule provides an appropriate basis for collecting the Levy.

The only sustainable objection came from J Sainsbury who objected to a levy in respect of superstores. This lead to the only change. House builders seem to have accepted the proposals as inevitable.

It will remove the planning authority powers to claim contributions towards infrastructure not listed in the schedule and remove some uncertainty. But it leaves some issues to sort out. There will be no charge in respect of “affordable housing” so market housing is shouldering that burden.

Malcolm Brown, Planning Director at Sibbett Gregory comments:-

“There are serious concerns within the development industry that at a time when the Government is seeking to “boost significantly” the supply of housing, that the cost of house building will be increased by £75 to £150 per sq. foot.  That will add £6,000 – £12,000 to the cost of a modest 3 bedroom house.

On top of this levy, house builders are expected to provide up to 50% affordable housing.  The question is to what extent this new levy will impact upon an industry already struggling to meet housing needs”

The Levy takes effect early in 2013.