Government ignores call for £500m for planning reform

The government has ignored demands for a £500m fund to help local authorities in planning reform. The housing select committee had called for the finance to ensure local planning authorities were equipped to provide policies for decarbonisation as part of the planning overhaul. The Royal Town Planning Institute said the finance over four years would facilitate efforts to tackle the climate crisis and level up. However, a formal response from the Department of Levelling Up, Housing and Communities to the committee’s recommendation makes no reference to new funding. Instead, the DLUHC said “the government has made significant funding available to local authorities for them to act on climate change”. The response points out some £1.2bn in grant funding was available in 2020-21 for local authorities to act on climate change, as identified by the National Audit Office. It adds that £4.8bn has been made available through the Levelling Up Fund, in which projects should be aligned with net zero goals. In the spending review last year, a further £65m was allocated to improving planning through the introduction of a new digital system. Net zero actions The department said the Net Zero Strategy has set out an intention to simplify and consolidate funds which target net zero initiatives at the local level. It added it will explore ways to provide certainty to boost investment in longer-term programmes that support regeneration. The broader response from DLUHC noted that the department is considering how the planning system can further support the 2050 net zero commitment. It said the upcoming Levelling Up White Paper will build on actions from the government to both deliver net zero and level up. This year, the government will also share findings from the Private Rented Sector Enforcement Study, to give councils best practices for monitoring, compliance and enforcement of minimum energy efficiency standards in the sector. For homeowners, the response ruled any changes to VAT or stamp duty taxes for energy efficient homes. “Using SDLT to incentivise home energy performance improvements would require a radical overhaul of this tax,” it said, stressing that this could effect housing affordability and social mobility. It said that VAT reductions would  “impose significant additional pressure on the public finances”, and added for similar reasons there would be no council tax incentives.   To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews Image © Shutterstock