Dec 12 2005
The Federation of Master Builders today warned that the Government's proposals to introduce a levy on housebuilding to finance local infrastructure was an attempt by Gordon Brown to help plug his spending deficit by taxing housing.
A public consultation on the Planning-gain Supplement, recommended by the Barker Review on housing supply, was published yesterday alongside the Pre-Budget Report and will run until February 2006.
Said Ian Davis, Director General of the Federation of Master Builders: "While everyone is agreed that the planning system needs reform, the proposed Planning-gain Supplement is simply a stealth tax. Taxing the building process means that consumers will end up paying more."
While SME housebuilders accept the principle of planning contributions to address the impact of development on local infrastructure, the proposed Planning-gain Supplement does not address the planning process in the areas where reform is needed.
Continued Mr Davis: "What the industry, and particularly smaller housebuilders, need in order to provide more housing is a planning system that is clear and consistent, gives certainty, and eliminates arbitrary local decisions."
FMB's Housebuilders Group which represents the interests of SME housebuilders within the FMB, will be making a full response to the consultation on the Planning-gain Supplement.