12 October 2007

QPA Welcomes Scrapping of Planning Gain Supplement

QPA, the principal trade association for the sector, has welcomed news from the Treasury that it will not be going ahead with the proposed Planning Gain Supplement.

In close liaison with the CBI Minerals Group and the CPA, QPA had been arguing vociferously against tax proposals that did not take into account the stark differences between minerals development and other forms of development, particularly housing. The scrapping of the PGS has made way for new proposed planning charges, which will apply to residential and commercial development and will be delivered through the planning system as opposed to national taxation. The system will also be linked to the Local Development Framework process.

At this stage, it is not clear whether aggregates and mineral operations qualify as commercial development and the lack of detailed guidance means that the industry remains cautious. QPA will continue to press DCLG to ensure that minerals will be exempt from the scope of the new system.

The QPA's Director General Simon van der Byl said: "Kate Barker's original recommendation to levy for a proportion of land value uplift through the planning process clearly had residential development very much in mind. In the light of the new proposals, QPA will continue to seek clarification on the scope of the system and work to ensure that mineral operations are exempt. Above all, we will seek to guarantee that the new system will not unnecessarily constrain the need for an adequate and steady supply of aggregates for the UK construction industry".

ENDS


QPA Contact: Tim Parry - 020 7963 8000.