Livingstone calls for section 106 revision
London Mayor Ken Livingstone has called on the government to drop plans to introduce a planning gain supplement in London.
The supplement could hold-up housing development, he told delegates at the Town and Country Planning Association conference.
'The government's proposed planning gain supplement would not work in London and could actually hinder development,' he said.
'Given the failure of previous forms of development taxation the government should instead revise the section 106 process to make it more strategic,' he added.
The mayor spoke out as economist Kate Barker, who recommended the planning gain supplement as part of her review of housing supply in 2004, said the consultation into the proposals needed to look at why developers favour a tariff system.
'The problem with a tariff is that it could be inflexible if we start to get land prices moving around,' she told Inside Housing.
'It is possible as we move through time that we will see land prices declining - in which case profit will decline.
'I think it is very interesting that this argument does not seem to win any favour with property developers.'
She also said her new review of planning policy (Inside Housing, 9 December) would attempt to link a number of other studies including Sir Rod Eddington's ongoing examination of the long-term infrastructure needs of the economy and Sir Michael Lyons' review of local government.