PGS could be scrapped

A controversial tax that would have imposed a levy on profits made by housebuilders could be scrapped, the prime minister has admitted.

In his comprehensive review of the government's new housing policies, Gordon Brown admitted that the planning gain supplement (PGS) could be abandoned if a "better alternative" was found.

In his speech to Parliament Mr Brown said that the bill was "provisional" and was subject to change were local authorities able to be provided with a better way of recouping revenue to invest in local infrastructure.

The bill had intended to use revenue from construction projects to fund initiatives in the local community.

"We're pleased the prime minister is not charging ahead with something we don't think would have the benefits expected of it," commented John Stewart of the House Builders' Federation, according to the Guardian.
"There are better alternatives to a property gain tax and we were concerned this wasn't a workable proposal," Mr Stewart added.


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