Local authorities in Surrey have agreed an innovative scheme which could lever £10m a year from developers to help fund new roads, utilities, parks and schools.
All 12 councils in the county have backed the scheme, which is designed to ensure that developers contribute to the increased demand for public services created by new housing.
The project has been developed in a partnership led by Elmbridge Council on helaf of the county council and Surrey's other district and borough councils.
It uses a calculation for the local planning authority to make a charge for each area development, based on the number of dwellings being built and the number of people likely to live there.
The final charge will be paid to local borough or district, with an extra 5% levy made for administration. Surrey County Council will reserve 1% of the total to pay for public service improvements, such as new access roads or parks in areas. All monies will be held locally by the district and borough councils, which will act as treasurers.
As a rough calculation, the county council, which takes the smallest element of the charge, will receive £100 for every £10,000 charged to developers.
The rules will apply to all smaller-scale housing or business developments, with separate negotiations being held for large-scale projects. Any social or key worker housing schemes will be exempt from the charge.
Andy Roberts, Surrey County Council’s strategic director for community services, said: ‘Every new housing development in Surrey requires the introduction of services, whether that’s a library, a new park, fresh pathways, or even access roads and utilities.
‘Surrey is expected to take some 70,000 new homes under government plans to increase supply in the region. This is a simple and realistic way of removing the burden of providing those extra services from taxpayers. ‘It will have no effect on the house prices, as these remain driven by the market, so the charge will most likely be absorbed by the developer. The net result will be significant improvements in public services, at no extra cost to taxpayers.’
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