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<p>The Department for Communities and Local Government carried out a public consultation
in March 2014 to invite views and local evidence on proposed changes to national policy
on the issue of Section 106 tariffs being imposed on empty buildings being brought
back into use. All evidence submitted was carefully considered. The new policy was
outlined in my Written Ministerial Statement of 28 November 2014, <em>Official Report</em>,
Column 55WS. The purpose of the credit is to provide an incentive that will help regenerate
empty and redundant buildings.</p><p>I can confirm that we have also undertaken an
Equality Impact Assessment, which I will arrange to be placed in the Library. We do
not consider our reforms will have a negative impact on discrimination, fostering
good relations or advancing equality of opportunity.</p><p>We do not believe that
our reforms will have any significant adverse effect on our affordable housing programme.
We have so far delivered 217,000 new affordable homes since 2010, and are bringing
in £19.5 billion of public and private in affordable housing over the current Spending
Review period. In the next Parliament, we are on track to deliver a further 275,000
new affordable homes, backed up by £38 billion of public and private investment.</p><p>Planning
guidance is kept under review and is updated as required, and we are open to representations
on any practical areas where further assistance is needed to help facilitate the implementation
of new policy.</p><p>I would note:</p><p> </p><p>· The policy changes are aimed at
providing a clear incentive for brownfield regeneration, whilst supporting the Government’s
policies of protecting the Green Belt and increasing housing supply.</p><p> </p><p>·
The relief is intended to reflect the often higher costs of conversion and refurbishment
and bringing an existing building back into use. Our reforms will help increase development
and regeneration, providing more homes at no cost to the taxpayer.</p><p> </p><p>·
Such re-use of existing buildings has a limited impact on local infrastructure; however,
any increase in floor space would still be liable for Section 106 tariffs.</p><p>
</p><p>· The Government had already amended regulations for the Community Infrastructure
Levy which extend an existing credit for vacant buildings being brought back into
use from the levy. This applies either where buildings are brought back into the same
use, or for a change of use provided they have not been “abandoned” and have been
in use for at least six months in the last three years. In either case the levy is
only charged on any increase in floor space. Our Section 106 reforms mirror those
Community Infrastructure Levy reforms: this is a consistent, joined-up approach.</p><p>Our
new policy was endorsed in the consultation by the likes of the Federation of Small
Businesses, the Home Builders Federation, the London Chamber of Commerce and Industry
and the British Property Federation. They said that the proposed policy would encourage
the refurbishment and regeneration of brownfield sites and bring vacant buildings
back into use, especially given the higher costs of building on previously developed
land.</p><p>It is crazy to be putting stealth taxes on empty and redundant buildings
being brought back into productive use, as it hinders regeneration and discourages
new housing being created from conversions. I would note to the rt. hon. Member for
Dulwich and West Norwood that one of the reasons why London house prices are so high
is all the levies and charges placed on them. If the state puts heavy taxes on new
housing, prices will rise and supply will fall; conversely, our reforms will help
lower housing costs and increase housing supply.</p><p>Reflecting commitments made
in the Coalition Agreement, getting empty and redundant buildings back into use is
a key priority for this Government. Under the Coalition Government, the number of
empty homes in England has so far fallen to a 10 year low. Our reforms will further
support the conversion of empty buildings, and so deliver an economic, social and
environmental benefit to society.</p><p> </p>
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