Bank of England economist Kate Barker has recommended massive changes to the planning system, including reviewing PPG3 and section 106 agreements, to tackle housing shortages in the UK. In her final report published today (Wednesday March 17)she says that private sector housing rates would need to increase by 120,000 a year in the UK to bring house price inflation down to the European average of 1.1%. Among many changes to the planning system, she proposes that Local Plans should be more realistic in allocating land and more flexible, and that strong Regional Planning Executives should be introduced. She also recommends the introduction of a "planning gain supplement" as an alternative to section 106 requirements which will see a tax put on the value of land proposed for development. "This should not be set so high as to discourage development," she says, "but at a rate that at least covers the estimated local authority gain from section 106 developer contributions and provides additional resources to boost housing supply." Wilson Bowden group legal director Nick Townsend welcomed the report. "We're delighted with what Kate Barker's doing in this report. She's bringing in flexibility to planning and a vigorous review of PPG3. She …