Clause 1
Planning-gain Supplement (Preparations) Bill
11:00 am
Vincent Cable (Shadow Chancellor, Treasury; Twickenham, Liberal Democrat)
The hon. Lady is right; there could be all kinds of unforeseen consequences. Certainly, once planning permission has been granted and planning gain supplement has been charged on that approval, it will be in the interests of the developer to bring the development forward, rather than sit on it. If the land has not got to the planning stage, building in a higher rate of tax is a disincentive for development. I am trying to get clarification on whether the Government envisage a higher rate of tax overall on development to ensure that local authorities receive a larger yield than at present.