A coalition of developers and homebuilders has welcomed the Chancellor’s announcement of further consultation on a charge-based alternative to the proposed Planning Gain Supplement (PGS) to fund regional and local infrastructure.

An alliance of the Home Builders Federation, British Property Federation, Major Developers Group and London First had responded to the Prime Minister’s call for industry to devise a workable alternative to the Planning Gain Supplement to be considered ahead in time for the Pre-Budget Report.


The alliance had urged the Government to introduce a system of tariffs or charges which would be set locally to reflect regional and local infrastructure needs identified through Regional Spatial Strategies and local plan making.

Stewart Baseley, Executive Chairman of the Home Builders Federation said: "We welcome the Chancellor’s recognition that the proposed Planning Gain Supplement was unworkable and we look forward to working with Government to develop further a tariff-based approach to help meet infrastructure costs through developer contributions. To deliver the much needed 240,000 new homes per year it is vital we agree a workable system to raise additional funds for necessary infrastructure."

(CL)