A group of leading organisations representing British business, property and planning have called on Gordon Brown to clarify the Government’s position on the proposed Planning Gain Supplement (PGS).
The Royal Town Planning Institute (RTPI), the British Property Federation (BPF) and the British Retail Consortium (BRC) think the PGS tax proposals made in late 2006 are unworkable.
The PGS proposes to tax the rise in land values created when planning permission is granted.
The organisations are concerned that failure to provide certainty is threatening investment in building.
Rynd Smith, head of Policy and Practice at the RTPI said: “Uncertainty in infrastructure planning now could lead to real harm in three or four years time.
“New housing is in danger of missing out on the full range of services that it needs, creating the sink estates of the future.
“Failure to include public transport will result in environmental damage as commuters continue to go by car.
“New construction without adequate infrastructure is unsustainable, but this could be the future if we don’t set a clear direction soon.”