Regional infrastructure funding shortfall could prompt tariff on development

July 1, 2005
An infrastructure funding gap in eastern and south eastern regions could force some counties to introduce a development tax similar to the one used in Milton Keynes. <p></p><p>Research by Roger Tym &amp;&amp; Partners for the South East Counties, a group of local authorities, has revealed that the funding gap in the south east could be up to £1.9 billion while the eastern counties of Bedfordshire, Essex and Hertfordshire could see a gap of £6.1 billion. The report’s figures were based on potential funding from the Housing Corporation, Housing Association borrowings, government departmental funding, private finance initiatives and section 106 agreements. </p><p>The South East of England Regional Assembly (SEERA) has proposed a new development tax as one of a raft of measures aimed at meeting the vast shortfall. Roy Bowers, head of spatial planning at SEERA, said: "We have identified an enormous problem with infrastructure. Section 106 agreements are cumbersome and inadequate, and we think the tariff idea has a role to play as part of a combination of measures." </p><p>The ODPM has refused to comment on specific figures, but officially responded that "the figures in the report depend on a range of assumptions which need to be tested or differ …

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