A group of leading organisations representing property and planning has called on Gordon Brown to clarify the UK Government’s position on the proposed Planning Gain Supplement (PGS).

The PGS proposes to tax the rise in land values created when planning permission is granted. Failure to provide certainty is threatening investment in the infrastructure needed to create truly sustainable communities. The coalition is calling on Government to provide certainty as a matter of urgency.

The Royal Town Planning Institute (RTPI), the British Property Federation (BPF) and the British Retail Consortium (BRC) all agree that the PGS tax proposals made in late 2006 are unworkable, and that the government is currently thinking about the way forward, but the lack of a clear direction is causing uncertainty and raising the prospect of significant social, economic and environmental harm.

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Money is needed to build infrastructure to support sustainable communities and housing growth. At present, most funds come from the ‘planning gain’ system, which the PGS tax would largely replace. Infrastructure takes a long time to plan and, without certainty about the planning and funding process, it is likely that much-needed infrastructure will not be properly planned and may be delayed or not built at all.

Rynd Smith, Head of Policy and Practice at the RTPI said: “Uncertainty in infrastructure planning now could lead to real harm in three or four years time. New housing is in danger of missing out on the full range of services that it needs, creating the sink estates of the future. Failure to include public transport will result in environmental damage as commuters continue to go by car. New construction without adequate infrastructure is unsustainable, but this could be the future if we don’t set a clear direction soon.”

(CL)