Clause 1
Planning-gain Supplement (Preparations) Bill
12:00 pm
John Healey (Financial Secretary, HM Treasury; Wentworth, Labour)
We need the paving Bill to fill the gap in the Department’s authority when preparing for the possible introduction of the planning gain supplement. As a matter of accountability to this House, the Bill has been brought in Committee for approval.
I say to the hon. Member for Rayleigh that his amendment is simply unnecessary. I would have thought that he would welcome the fact that we are undertaking a serious consultation exercise, instead of belittling our publication of the three consultation documents. Clearly, it is in no one’s interest—certainly not the Government’s—to proceed with the implementation of a planning gain supplement before we are satisfied that the policy is workable and effective in supporting growth and helping to finance the infrastructure required for that growth. I shall repeat what I said on Second Reading: the Bill only provides authority in connection to the preparation and imposition of the planning gain supplement. If a decision is taken not to introduce it, no further expenditure will be made under the Bill.
The hon. Member for Rayleigh made a point about valuations, which do not directly relate to either amendment, during his remarks on amendment No. 3. He seemed to suggest that valuations are a new feature of the tax system, but they are a regular part of it. The Valuation Office Agency undertakes about 60,000 property valuations every year in relation to capital gains and inheritance tax. He might be interested to know that only six of those went to a land tribunal. The VOA does that now, and it would continue to do so under a planning gain supplements system.
Amendment No. 3 would delay the expenditure provided under the Bill until a full regulatory impact assessment is laid before the House. The Committee will have appreciated from the hon. Gentleman’s remarks that, as required by Cabinet Office guidelines, we have already carried out a partial regulatory impact assessment on PGS, which was published alongside the first consultation in December 2005. I am happy to confirm to the Committee that we will continue to follow Cabinet Office guidelines. We will publish a full RIA for the planning gain supplement at the appropriate time, if we decide to proceed with it. Only then will it be appropriate to include assessments of the impact on small firms and on competition.