Council decides not to use infrastructure levy
Wolverhampton Council has decided not to implement a new planning tax after an investigation found the high implementation cost would not be offset by a ‘low level’ of return.
The council decided not to go ahead with drawing up plans for the community infrastructure levy because it has limited large-scale development planned for the next five years that have not already gained planning permission. It said it would not see any revenue from the tax until late 2016.
The community infrastructure levy is paid to councils by developers to fund roads, schools and community facilities. It is not currently payable on affordable housing.
Council bosses at Wolverhampton also found that introducing the payment would cost around £75,000 for staff and inquiry costs, and a further £50,000 each year for administration.
‘Given the high estimated cost of implementing CIL and the low level of anticipated revenue, it is recommended that the council should not pursue the introduction of a CIL for Wolverhampton at the present time,’ the council report said.