THE Confederation of British Industry (CBI) has called plans to extend developers' planning gain obligations a "stealth tax on regeneration".
Proposals for extending the system of planning gain - whereby developers pay for projects not directly related to their application - were announced last month by the Government.
Currently 1.5 per cent of all applications have planning gain obligations attached, but it is proposed to extend that to all commercial applications.
However, the CBI claims it could undermine economic development.
"Through planning gain, businesses already give local authorities £2b a year for local projects," said John Cridland, deputy director-general of the CBI.
"The Government is right that the rules need to be clearer and obligations more certain, but we estimate this proposal could leave ten times more companies paying out."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article