SEBG News
Scottish estates warn of planning tax threat to housing
27th February 2006The Scottish Estates Business Group (SEBG) which represents progressive rural estates, today (Monday February 27) warned that Government plans to introduce a planning tax would backfire and fail to achieve the objective of stimulating housing supply.
In its response to a Treasury-led consultation on Planning Gain Supplement, SEBG said that the Government proposals would threaten the very housing developments it wants to encourage.
Highlighting the Group’s concerns, Deputy Chairman Roddy Jackson said:
“ We believe that rather than being a spur to development, imposition of Planning Gain Supplement as proposed would deter development, reduce the supply of available land, limit the amount of housing becoming available and raise house prices. We are particularly concerned about the effect this may have on the provision of affordable housing in rural areas”.
SEBG said that as the proposals would mean developers having to pay more than under current planning regulations, the economic viability of projects would be reduced, with many being shelved as a consequence. The proposals would be complex to administer, as well as costly.
SEBG also voiced major concerns that the UK Government’s proposals for the Planning Gain Supplement, a development tax, were intervening in the devolved issue of planning. It highlighted how the proposals would cut across current arrangements under Scottish planning law – Section 75 agreements - for developer contributions to local infrastructure.
“ If Scottish planning legislation were not reformed to parallel the changes being proposed by the UK Government, then developers in Scotland could be required not only to pay the Planning Gain Supplement but also suffer additional local planning obligations. This would run counter to the principle of equitable and uniform tax treatment between England and the rest of the UK” says the Group.
For further information contact:
Ramsay Smith at Media House 0141 220 6040/07788 414856 or
Polly McPherson at SEBG on 01620 861898/07810 891831.
About the Scottish Estates Business Group
SEBG represents a group of progressive land-based estates with significant
agricultural and rural business interests. It aims to promote a modern
business approach in the management of Scotland's land resource in ways
which deliver social, economic and environmental benefits. The Group
seeks to secure a sustainable and prosperous future for rural areas and
its members work hard across Scotland to stimulate enterprise and economic
development.
