G15 responds to technical consultation on the Infrastructure Levy

The G15 has responded to the Government's technical consultation on the Infrastructure Levy. In our evidence, we have expressed concern at the proposed new Levy and its potential impact on the delivery of affordable housing.

We are concerned that the proposed Infrastructure Levy will not secure sufficient resources to match those currently raised through the existing Community Infrastructure Levy and Section 106 contributions.

Section 106 contributions currently account for over 50% of affordable housing delivery, and any new system must command the confidence of the sector that this can be improved upon.

Our response also expresses concern that the new system will cause further complications rather than resolving current ones within the system which are continuing to consume the resources of local authorities and providers. The proposal to introduce multiple rates, thresholds, zones, routeways and payment stages is likely to create an even more complex system which both local authorities and providers will struggle to navigate.

Additionally, by proposing to charge the Levy on the final sale GDV of a development, the Levy is inherently risky. GDV can change over the years between acquiring planning permission and completion and is not indicative of the viability of a scheme.

A higher rate of GDV will not necessarily lead to a higher return for providers with other factors often reducing our return despite increasing GDV. These costs have also been known to outstrip the increase in GDV especially during in particularly challenging economic circumstances.

You can read our full response here: