Wednesday, March 28, 2024
Lack of certainty over implementation of PGS a concern for RICS Scotland
Concerns at the potential disadvantage faced by the Scottish business community were highlighted today by the Royal Institution of Chartered Surveyors in Scotland (RICS Scotland), following Chancellor Gordon Brown's budget announcement on the Planning-gain Supplement (PGS).
RICS Scotland planning spokesman, John Duff, said: "Little detail is yet available on the plans for implementation in Scotland, a situation which is unlikely to improve in the coming months due to the forthcoming parliamentary elections in May. Divergent planning and local government systems mean that much Scotland-specific detail will still need to be worked out, including the best way to ensure that benefits of PGS are seen in the areas where the tax is raised.
"RICS Scotland urges the new administration, when appointed, to make the Planning-gain Supplement a policy priority. We further urge that comprehensive engagement with stakeholder organisations continues."
In general, RICS has given a cautious welcome to the national measures outlined in today's budget.
However, the Government has still not been clear over the its understanding of how local provision of infrastructure actually comes about and where responsibility for infrastructure works to be carried out, or funded through PGS will actually lie.
The RICS supports the call for developers to be better able to help in infrastructure planning in their areas but reiterate that PGS would be better focused towards only large-scale schemes, with small schemes including minor changes of use, subject to the existing section 106/ 75 agreements.
The RICS is surprised at the emphasis on infrastructure as this is some way removed from housing provision (the original reason for introducing PGS). Clarity is needed over the way in which PGS would work with section 106/ 75 agreements. Would these be curtailed? Work alongside PGS? Removed altogether?
RICS Scotland planning spokesman, John Duff, said: "Little detail is yet available on the plans for implementation in Scotland, a situation which is unlikely to improve in the coming months due to the forthcoming parliamentary elections in May. Divergent planning and local government systems mean that much Scotland-specific detail will still need to be worked out, including the best way to ensure that benefits of PGS are seen in the areas where the tax is raised.
"RICS Scotland urges the new administration, when appointed, to make the Planning-gain Supplement a policy priority. We further urge that comprehensive engagement with stakeholder organisations continues."
In general, RICS has given a cautious welcome to the national measures outlined in today's budget.
However, the Government has still not been clear over the its understanding of how local provision of infrastructure actually comes about and where responsibility for infrastructure works to be carried out, or funded through PGS will actually lie.
The RICS supports the call for developers to be better able to help in infrastructure planning in their areas but reiterate that PGS would be better focused towards only large-scale schemes, with small schemes including minor changes of use, subject to the existing section 106/ 75 agreements.
The RICS is surprised at the emphasis on infrastructure as this is some way removed from housing provision (the original reason for introducing PGS). Clarity is needed over the way in which PGS would work with section 106/ 75 agreements. Would these be curtailed? Work alongside PGS? Removed altogether?
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