Property firms back Tory council tax plans
British Property Federation endorses proposals to pay councils bonuses for allowing development
The BPF, which represents commercial and residential property firms, has given its approval to Tory plans to make payments to councils equal to the council tax or business rate income from new schemes. The Conservatives said they would give councils money equal to 125 per cent of the council tax on new affordable housing.
The BPF said it wants councils to get the extra skills and staff needed to handle increased planning powers. It also pushed for clear national guidance on how councils should work together on region wide schemes. The Conservatives have proposed to abolish the current regional planning system.
In a new report, ‘Making Localism Deliver’, the BPF also urged the Tories to provide tax breaks on stamp duty to encourage pension funds to invest in rented homes and pressed for the introduction of new funding concepts, like tax increment financing where councils forward fund development and infrastructure by borrowing against future uplifts in business rates and council tax that would result from the improvements.
Mike Whitby, leader of Birmingham council, said: ‘By making use now of future increases in non-domestic business rates, we can maintain our competitiveness and ensure we attract foreign investment. This would require the Treasury to come to agreements with councils but would not actually cost them anything.’
Liz Peace, chief executive of the BPF, said: ‘If done properly, localism could mean a smoother planning process, quicker decision-making and better engagement. The property industry is committed to working closely with councils, but they will have to be given significant support to make this work. Poorly implemented localism – as a result of inadequate resources – could lead to greater delays, ultimately reducing the attractiveness of the UK as a place to invest. This is of particular concern in relation to smaller councils when faced with the challenge of delivering large one off regeneration schemes.’
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Readers' comments (5)
Bernard Townroe | 27/10/2009 11:00 am
And what kind of properties will this encourage....? Will it bring forward more affordable housing or more executive developments? Call me cynical but I don't think those chasing Council Tax receipts will be motivated to support the provision of properties in the lower tax bands by this policy. I mean, who would want the great unwashed in nice, Tory areas anyway?
Could there be a more self-serving policy for those who bemoan their fate in having to accommodate what are clearly the undeserving poor?
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Steve Austen | 27/10/2009 3:10 pm
No. The incentives go up to 125 per cent for affordable housing, meaning a greater incentive for the 'lower' bands. There surely cannot be anything wrong with getting the housing market moving? There is no place really for snobbish politicising.
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Bernard Townroe | 28/10/2009 9:46 am
Snobbish or sarcastic?
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sharon | 28/10/2009 11:26 am
This was part of the Conservatives housing speech at this years annual conference. The idea is that in return for more homes being built, the Government will match pound for pound the extra money that councils will get through the increase in council tax. The scheme will last for 6 years so the more ambitious councils are, the more money your neighbourhood will get.
Just one question - where will that money come from?
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Joe Halewood | 28/10/2009 1:58 pm
Where will the money come from is a good point. As is where will it come from for more staff..."...councils to get the extra skills and staff needed to handle increased planning powers"....?
Or if this is Localism then why does it propose "..... clear national guidance on how councils should work together on region wide schemes" .....especially when ".... Conservatives have proposed to abolish the current regional planning system"??
If Localism is about local autonomy it seems to need a alot of centralised and higher level agreement to make it happen and that need has to come from a body they propose to get rid of????
The 125% issue? 125% of council tax band A or B properties is far less than 100% of Band D, E, F etc. So which will generate more money for councils - 20 Band A or 20 Band D properties? So councils will want Band D and above properties wont they? Thats a no-brainer. Make it 200% and the argument may hold....after explaining where the money is coming from that is.
"Mike Whitby, leader of Birmingham council, said: ‘By making use now of future increases in non-domestic business rates, we can maintain our competitiveness and ensure we attract foreign investment. This would require the Treasury to come to agreements with councils but would not actually cost them anything.’" -
Er making use now of future increases... er isnt that spending now on future income? What if that income doesnt materialise? - Thats a policy of I think I'll go out and spend next years wages and worry about how I afford that later and about how I finance the cost of money in the meantime!!!! [Oh and increasing public borrowing in the meantime - something which the tories berate the curent incumbents for!!]
Is it any wonder that the developers and builders of commercial and domestic properties love this idea??
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