HL Deb 29 June 1966 vol 275 cc771-2WA
THE EARL OF KINNOULL

asked Her Majesty's Government:

  1. (a) whether they will confirm that under the proposed Land Commission Bill (Clause 64(3)) relief of the proposed levy will not be granted to house builders on residential development sites unless detailed planning and by-law consents have been granted by local authorities before the appointed day; and whether, in this event, Her Majesty's Government will grant some extra relief to house builders who are faced at the present time, in purchasing residential building land with outline planning consent at current market prices, with the difficulty of not knowing whether, due to delays by the local authorities, they will be liable for the levy on this land;
  2. (b) whether Her Majesty's Government will advise house builders, if no further relief is to be given during the initial period of the Land Commission, what other policies they should adopt beyond either passing on the extra unforeseen tax to the house purchaser, or temporarily not acquiring building land and so halting their immediate building programme.

THE PARLIAMENTARY SECRETARY, MINISTRY OF HOUSING AND LOCAL GOVERNMENT (LORD KENNET)

(a) No. Projects of material development begun before the appointed day will not be liable to the proposed levy. A project is taken to have been begun when a start has been made on one of the operations specified in subsection (3) of Clause 64. What is included within a project of material development, whether begun before or after the appointed day, is a question of fact. Clause 67 provides broadly that where work on a project has begun before, but has not been completed by, the appointed day, and some of the specified operations started already are authorised by a planning permission in force at the appointed day then development can be completed on the whole of the land covered by that planning permission without liability for levy.

Thus, if outline permission was given for a housing estate but that permission included a detailed permission for the road lay-out (but not the houses) then if a start on the road works had been made before the appointed day the whole project would be taken to have started before the appointed day because the houses were to be built on land comprised within the planning permission which authorised the road works.

(b) These provisions are designed to encourage builders to buy land now on which they can start work before the appointed day, which is expected to be in the early part of 1967. If they buy land after the appointed day and start development on it within a reasonable time, it is unlikely that they will become liable for levy because the full development value will have been paid on the purchase and the vendor of that land will be liable for the levy.

House adjourned at twenty-five minutes before eight o'clock.