Skip to main content

Planning Gain Supplement

Volume 450: debated on Wednesday 11 October 2006

To ask the Chancellor of the Exchequer whether there will be a redistribution mechanism to transfer revenue from planning gain supplement (a) between local authorities within the Government office region in which the development is located and (b) to local or regional authorities in different Government office regions in which the development is located. (89408)

The Government stated at Budget 2006 that it will ensure that a significant majority of planning gain supplement (PGS) revenues are retained for infrastructure priorities within the local authority area where the revenues derived. The remainder would be dedicated to strategic infrastructure of regional importance. Further announcements on PGS will be made by the end of the year.

To ask the Chancellor of the Exchequer whether planning gain supplement will be levied at the same rates on (a) residential and non-residential development and (b) brownfield and greenfield land; and if he will make a statement. (89410)

The Government have proposed that planning gain supplement (PGS) be applied at the same rate on residential and non-residential development.

The Government consulted on the possibility of a lower rate for brownfield land, and will make further announcements on PGS by the end of the year.

To ask the Chancellor of the Exchequer what assessment he has made of whether local councils in which a development is located will receive an increase in net aggregate revenue once planning gain supplement is introduced and existing Section 106 agreements are curtailed. (89411)

The Government have stated that a significant majority of planning gain supplement (PGS) revenues would be retained within the local area where the revenues are derived. How much each community receives will depend on the level of development in their area that is subject to the planning gain supplement. Further announcements on PGS will be made by the end of the year.

To ask the Chancellor of the Exchequer whether planning gain supplement will be classified as a tax by (a) HM Treasury and (b) the Office for National Statistics. (89412)

The Government published a consultation on their proposals for planning gain supplement (PGS) alongside the 2005 Pre Budget Report. The Office of National Statistics have yet to take a view on the classification of PGS.

To ask the Chancellor of the Exchequer whether revenue from planning gain supplement will be (a) ring-fenced and (b) hypothecated. (89413)

As set out in Budget 2006, planning gain supplement (PGS) revenues would be hypothecated for local infrastructure priorities and strategic infrastructure of regional importance. The Government have stated that a significant majority of PGS revenues will be retained within the local area where the revenues derived.

To ask the Chancellor of the Exchequer whether it is his intention for it to be permissible for planning gain supplement revenues to be spent on infrastructure that is not allowed under section 106 agreements. (89414)

Planning gain supplement (PGS) revenues would be dedicated to financing additional investment in local and strategic infrastructure necessary to support growth. Further announcements on PGS will be made by the end of the year.

To ask the Chancellor of the Exchequer pursuant to the answer of 16 March 2006, Official Report, column 2417W, to the hon. Member for Brentwood and Ongar (Mr. Pickles), on planning gain supplement, if he will place in the Library copies of the responses to the consultation. (90103)

The Government will publish copies of the responses to the consultation alongside the summary of responses in due course. Further announcements on PGS implementation will be made by the end of the year.