Development of shopping centres and other retail schemes could be accelerated under Government plans to introduce a development levy as an alternative to conventional Section 106 agreements.
The proposals, unveiled by Planning Minister Keith Hill at last week's BCSC conference in Birmingham, would allow property developers to opt to pay a fixed charge to local authorities, rather than engage in lengthy negotiations over Section 106 agreements.
At the moment, local authorities use Section 106 agreements to detail the planning gain that developers are required to fund to enable new schemes to go ahead.
To ensure developers know in advance the costs they would incur, local authorities would be required to set out details of the charges to be levied on the development of new retail floorspace in local schemes.
'I believe this approach will deliver continued flexibility where necessary, but speed and certainty where possible,' said Hill.
Section 106 agreements are seen as a 'difficult area', which are 'a cause for delay and frustration in the industry', Hill told BCSC delegates.
The Government's proposals are designed to improve the speed, certainty and transparency of agreeing developers' obligations linked to new schemes.
The proposals also gained the backing of Sainsbury's group chief executive Sir Peter Davis. 'It would enable us to get on with schemes and get stores open more quickly,' he said.
The optional charge on development is destined for inclusion in the Planning and Compulsory Purchase Bill making its way through Parliament at the moment. Consultation on the proposed change is scheduled to end in early January.
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