Places, people and planning: update on proposal 14

Proposal 14: A more transparent approach to funding infrastructure.

We believe that introducing powers for a new local levy to raise additional finance for infrastructure would be fairer and more effective. Improvements can also be made to Section 75 obligations.

Why we are making a change

The provision of infrastructure is a major challenge to delivering development. We consider there are opportunities offered by a new delivery mechanism to deliver infrastructure which is required to support development across a wider area.

What we are doing

• Establishing an enabling power for the Scottish Ministers to introduce a levy to support the delivery of infrastructure.
• Research - identifying and assessing options for a new infrastructure levy (3 stages) and is now complete.
• We are not removing the provisions at Section 75A for modifying planning obligations but remain open to considering whether changes to Section 75 may be required in connection with future decisions on the role of a levy. The Scottish Government intends to review its current circular relating to planning obligations in due course.

How we will deliver change

• primary legislation – powers to include an infrastructure levy are included in the Planning Bill
• secondary Legislation – the levy would be established through regulations
• guidance – yes
• non legislative action – Yes

Next steps

Following on from the infrastructure levy research work, we will put together a programme for developing the detial of a levy, including addressing issues of implementation for key stakeholders. Following enactment of the bill we will consult on the detail of how the infrastructure levy will operate in practice.