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Planning Gain Supplement

Volume 691: debated on Monday 16 April 2007

asked Her Majesty's Government:

What assessment they have made of the impact on farm businesses of the proposed planning gain supplement on development needed to meet environmental, animal welfare and food safety requirements; and [HL3008]

asked Her Majesty's Government:

What assessment they have made of the effect of the proposed planning gain supplement on the ability of farm businesses to respond to the Government's encouragement to diversify their enterprises in respect of (a) owner occupied holdings, and (b) holdings farmed by agricultural tenants. [HL3009]

The Government have consulted twice on their proposals for a planning gain supplement (PGS) and have met a broad range of stakeholders, including representatives of farm businesses. The latest round of consultation closed on 28 February 2007 and the Government are evaluating the responses and carefully considering stakeholder views. The Government will continue to work with stakeholders in order to better understand the impact of PGS on businesses.

asked Her Majesty's Government:

What progress they have made on setting a de minimis threshold below which business development would not attract the proposed planning gain supplement. [HL3010]

As announced in the 2006 Pre-Budget Report (Cm 6984), the Government are considering the thresholds for small-scale development for a planning gain supplement.

asked Her Majesty's Government:

Whether they intend that the proposed planning gain supplement will apply to agricultural developments that are approved by prior notification schemes to local planning authorities. [HL3050]

As announced at the 2005 Pre-Budget Report and consulted on in both 2005 and 2006, the planning gain supplement (PGS) would apply only to developments that require full planning permission, subject to minimum thresholds. The Government are keeping the scope of PGS under review.

asked Her Majesty's Government:

What professional advice they have sought on the valuation of farm businesses for planning gain supplement purposes. [HL3051]

The Government have consulted a wide range of stakeholders during the development of the planning gain supplement (PGS), including those involved in specialist agricultural valuations. The Valuation Office Agency, an executive agency of HM Revenue and Customs, gives advice to the Government on valuation matters and has led work on valuations for PGS.