Cash incentives for localised planning

Author: Local Government Chronicle - Feb 22, 2010

Posted in: Planning, Housing and Economic Development / Improving the system for planning and development / Local Government News

The Conservatives have said they would sweep away the present planning system and replace it with one based on financial rewards for localities that accept new development.

Their policy paper Open Source Planning said the proposals would restore democracy to planning while the incentives would prevent it being captured by ‘nimbys’, the party said.

Regional spatial strategies would be abolished along with national and regional building targets.

Shadow communities and local government secretary Caroline Spelman, right, said: "Too many decisions [are] taken by unelected quangos, there is too much unnecessary red tape and there are no incentives for local residents to back sustainable development.

"We will put local communities in the driving seat."

The Tories said there would be "a basic national framework of planning priorities and policies, within which local people and their accountable local governments can produce their own distinctive local policies to create communities which are sustainable, attractive and good to live in".

Localities that encourage development would gain extra funds as the government would match pound-for-pound for six years the extra council tax arising from new homes, with a similar arrangement for business rates.

Neighbourhoods would keep some contributions made by developers under planning gain deals, which would "generate real cash for local communities, [and] be a real incentive for local people to welcome new homes and new businesses", the party said.

The Tories have gone back on their previous intention to abolish the Infrastructure Planning Commission.

They will instead retain it as a source of expertise and use a combination of private parliamentary bills and fixed-term public inquires to deal with power stations, railways, airports and other major projects, after which a minister would decide rather than the IPC.

Liz Peace, chief executive of the British Property Federation, said: "Local incentives are sensible if the sums are large enough to sway people."

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