The government has decided to
delay the full introduction of its proposed new Infrastructure Levy by up to 10
years, causing some to question whether the policy will ever see the light of
day.
Late on 17th March
2023, the Department for Levelling Up, Housing and Communities (DLUHC) issued a
consultation on the Levy, which is designed to largely replace the use of
section 106 agreements to secure planning contributions, in which it said it
wanted to introduce it via a 10-year “test and learn” period.
The consultation also made clear
the government intends the mandatory Infrastructure Levy will be charged at the
point a scheme is completed, to maximise returns, and said councils would be
able to require a proportion of the levy be delivered “in kind” via on-site
affordable housing.