BMF Welcomes Delay To Introduction Of Planning Gain Supplement

by Jason Gorringe, Tax-News.com, London

30 October 2007

The British Marine Federation has this week welcomed the delay in the introduction of the Planning Gain Supplement, having worked with the Confederation of British Industry (CBI) to ensure that widespread industry concern on the matter was understood.

The BMF argued that the Supplement effectively amounts to a new business tax, levied during the planning process for development, for funding regional infrastructure development, and would be in addition to Section 106 agreements.

The Marine Federation announced that:

"The BMF responded to a consultation on PGS earlier in the year, and it looks like the government has listened because of the sheer weight of concerns expressed by all those responding. HM Revenue and Customs have recently written to BMF and other consultees confirming the announcement to delay the legislation required to implement the proposed measures until the next Parliamentary session."

"The government are prepared to 'defer legislation to introduce PGS if a better way could be found to ensure that local communities receive more of the benefits from planning gain, to invest in necessary infrastructure and transport'."

It continued:

"In the interim however, the Government do intend to legislate in the forthcoming Planning Reform Bill. Their aim is to empower Local Planning Authorities in England to apply for new planning charges associated with applications for development. Again, this would be alongside negotiated contributions for site-specific matters i.e. section 106 agreements."

"BMF will be monitoring closely to ensure that any proposals do not result in disproportionate costs for the marine industry, and continuing to work with CBI as alternative proposals emerge."

In July of this year, Prime Minister Gordon Brown signalled that he would be prepared to scrap the contentious Supplement if a new proposal more acceptable to the property development industry came along.

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