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Government considers developers’ alternative to PGS

The proposed planning gain supplement (PGS) looks to be dead and buried

The proposed planning gain supplement (PGS) looks to be dead and buried after the government announced it would consider a tariff-based alternative championed by developers.

The move – announced in yesterday’s Pre-Budget Report – could mean the end of the PGS, which was put forward in Kate Barker’s review in 2005 as a levy on development to raise additional resources to invest in the infrastructure needed to support housing growth.

However, in chancellor Alistair Darling’s (pictured) first Pre-Budget Report, he confirmed that the government was looking into the tariff-based alternative which would set tariffs locally to reflect regional and local infrastructure needs.

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