Communities that choose to accept new housing will benefit directly from new generous cash incentives.
In neighbourhoods where a neighbourhood plan is prepared, and supported by local people in a referendum, will be able to keep 25% of the revenues arising from the development that they choose to accept.
This cash boost will be paid directly to parish and town councils.
Neighbourhoods without a neighbourhood plan where the levy is charged will receive a capped 15% share of the levy revenue arising from development in their area.
Communities without a parish or town council will still benefit from this incentive, with the local planning authority retaining it and spending it in accordance with the wishes of the community.
The government has introduced this measure because it believes that communities need to be encouraged to accept quality development. Incentives are key to getting the homes built that we both need for today and for future generations.
In introducing this incentive, Planning Minister, Nick Boles said:
“We have a simple choice.
“We can decide to ignore the misery of young families forced to grow up in tiny flats with no outside space. We can pass by on the other side while working men and women in their twenties and thirties have to live with their parents or share bedrooms with friends. We can shrug our shoulders as home ownership reverts to what it was in the 19th century: a privilege, the exclusive preserve of people with large incomes or wealthy parents.
“Or we can accept that we are going to have to build on previously undeveloped land and resolve that we will make these decisions locally and build beautiful places like we used to.
“This government is determined to persuade communities to accept more house-building by giving them a tangible share of the benefits it brings. By undertaking a neighbourhood plan that makes space for new development, communities can secure revenues to make the community more attractive for everyone.”
©Kirkwells Town Planners and Sustainable Development Consultants based at the Lancashire Digital Technology Centre in Burnley www.kirkwells.co.uk
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