§ Mr. Lathamasked the Secretary of State for the Environment why he has decided to terminate the arrangements by which local authorities can buy land net of development land tax; and whether this will also apply to local authorities' land purchases for council housing, or for any purpose envisaged or permitted under clause 67 of the Local Government, Planing and Land (No. 2) Bill.
§ Mr. KingThese arrangements were an integral part of the community land scheme which is being wound up. Development land tax was envisaged by the previous Government as primarily a transitional measure until the second appointed day, when local authorities would acquire all land for "relevant development" at current use value. We are thus restoring authorities to the position they were in before the Community Land Act: they acquire land at market value like the private sector. The arrangements will cease to apply to all local authority land purchases.
§ Mr. Lathamasked the Secretary of State for the Environment whether, in the light of the Government's decision to discontinue the net of development land tax arrangements for land purchase, he intends to introduce any proposals for compulsory infrastructure contributions, or any similar methods intended to assist local authorities to afford the cost of providing basic infrastructure.
§ Mr. KingResources for the provision of infrastructure are included in the 159W appropriate programmes of local authorities and other public bodies. These are often supplemented by voluntary contributions from builders and developers. My right hon. Friend has no proposals for changing these arrangements.