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Radical Section 106 replacement wins backing

The Milton Keynes Partnership Committee has thrown its weight behind proposals for a £18,000 roof tax on all new residential schemes around the city.

In a break with traditional Section 106 agreements, the local urban regeneration agency wants developers to pay a standard 'per dwelling' contribution to guarantee the provision of regional infrastructure in the area.

The tax is expected to generate at least £60 million a year for Milton Keynes council, which could be spent on schools, hospitals and roads.

It is understood that as much as 10 per cent of the tariff would become payable once the developer had secured reserved-matters planning approval.

Another 15 per cent would be paid up once the development gets under way, and the remainder would become due on completion of each phase of the scheme.

The exact amount of tax payable would be calculated on the number of dwelling units proposed.

There are also plans to introduce a further tariff for non-residential schemes - a contribution based on the floor area of the development.

The government initially wants to build around 15,000 more homes around the Buckinghamshire city.

by Richard Waite

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