Land tax proposals are 'unfeasible'

Plans put forward in late 2006 seeking to tax increases in land value following the awarding of planning permission are unfeasible and should be either amended or scrapped altogether, industry groups have suggested.

The British Retail Consortium (BRC), the British Property Federation (BPF) and the Royal Town Planning Institute (RTPI) have all said that a lack of clarity regarding the exact status of the proposals needs to be resolved.

The planning gain supplement scheme (pgs) could remove the current benefits that developments provide to the community, BRC director general Kevin Hawkins suggested.

"The current system is far from perfect, but at least it guarantees direct and timely benefit to the community in which a development is taking place," Mr Hawkins commented, according to CityWire.

"There is no such guarantee under the PGS, where much revenue will be allocated bureaucratically, at arms length from local communities and projects," he added.

Separate planning permission proposals introduced earlier this month intend to make it easier for homeowners to carry out basic renovations, conversions and extensions, the government has claimed.


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