Daylight robbery?
Shropshire Council intends to charge all new open market housing a tax towards providing essential infrastructure. The money raised will go towards road improvements and transport, flood defences, education, medical facilities, open space and recreation throughout the County as a priority, and an unknown proportion will go towards infrastructure needed specifically in the local area. These charges are in addition to the proposed affordable housing contributions already identified.
The full detail of how the new charges will be applied can be found on the Council’s website, but at present developers in Shrewsbury and the main market towns will pay a levy of £40 per square metre on every new house built, but everywhere else they will pay £120 per square metre. This means a new 2-bed terraced house built in town will have a levy of £2,600 and the same house built anywhere else will pay £7,800 towards infrastructure. This differential becomes even more noticeable the larger the property.
Karine Swanson, head of planning at Balfours, says: “People understand that a payment towards supporting infrastructure is required, but what is hard to understand is why the rural areas have to pay three times as much as the market towns? What guarantees are there to ensure the majority of the money raised is spent in the local area? Indeed, why are we being asked to consider this new charging schedule when the Council has not yet compiled the rural infrastructure requirements?
It seems that Shrewsbury and the market towns are being cushioned from potentially higher charges, and commercial developments are not even being asked to contribute at all at this stage, presumably to ensure economic growth takes place in the main growth centres. If high rates are likely to suppress economic growth in the main centres, this argument is equally true for investment in the rural areas. I am concerned that the potential disparity in charging rates will undermine the viability and growth in the rural hubs and clusters for generations to come.
Shropshire Council is seeking comment on these proposed charges by 18 February 2011 for the Draft Charging Schedule, then by 21 April for the Developer Contributions Supplementary Planning Document. I would urge you to consider how these charges might affect your area and put your comments to the Council.”
FOR MORE INFORMATION CONTACT KARINE SWANSON 01743 241181