Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government what plans they have to publish an assessment of the implications of the proposed infrastructure levy.

The Levelling Up and Regeneration Bill gives the Government powers to create a new Infrastructure Levy. This will be a mandatory, non-negotiable charge, set and collected locally.

The Government is committed to the delivery of on-site affordable housing through the Levy, and to delivering at least as much, if not more, affordable housing than at present.

Section 204G(2) of the Bill sets out that, when setting Infrastructure Levy rates, local planning authorities will need to have regard to the level of affordable housing that is already secured through developer contributions, recognising the desirability of maintaining the level at which affordable housing is delivered.

We will also introduce through regulations a new 'right to require', which will allow local authorities to require developers to deliver a set proportion of their Levy liability as onsite, in-kind affordable housing. Developers will not be able to negotiate their affordable housing obligations downwards, which offers significant protection of affordable housing delivery over the present system.

The Levy will be brought forward through regulations that will set out the detail of how it will operate. We intend to consult on this detail, prior to any publication of regulations.

The Levy will be implemented through a ‘test and learn’ approach to support local authorities through the transition period. This will see the Levy rolled out in some local authorities in the first instance, before wider national roll-out over several years. This approach will aid the monitoring and evaluation of the Levy where it is introduced initially, and support the creation of a system that works.

A Regulatory Impact Assessment has been published for the Levelling Up and Regeneration Bill which includes specific impacts in relation to the Infrastructure Levy. Impact Assessments are required for all UK government interventions of a regulatory nature that affect the private sector and/or public services. The Impact Assessment has been reviewed and rated by the Regulatory and Policy Committee prior to publication, and the Department has received a 'Green' rating, meaning the Impact Assessment is fit for purpose. The Regulatory Impact Assessment can be found here.