| Taxation is one of several instruments of land policy employed by the state to intervene in the development process. Through taxation the state attempts to capture for the community a share of betterment value, the accomplishment of which has been of major concern to post-war British planning. Between 1947 and 1985 the British state used, and abandoned, five different regimes for taxing gains from the development of land. Since the abolition of the Development Land Tax in 1985 there has been no means, apart from general forms of taxation, through which increases in land values can be returned to the public sector. Concurrent with the abolition of development land taxation have been central government cutbacks in the finances of local authorities, making it increasingly difficult for them to provide facilities for their communities. The 1980s witnessed the increased use by local planning authorities of planning agreements to secure an ever increasing range of facilities from the private sector. Contention over the concept of 'planning gain' intensified. This thesis examines the use of planning gain as an instrument to recoup betterment value for the 'community', focusing exclusively on residential development, and involves an examination of a number of case studies. The advantages/disadvantages of planning gain to local planning authorities, developers, landowners and the 'community' are compared with the respective position of these actors in the development process under earlier methods of development land taxation, with particular consideration to questions of equity. The evidence suggests that, although remaining a problematic concept, especially at the practical level, planning gain could offer a workable solution to the betterment issue, securing betterment for the community without acting as a disincentive to development. There is a case for the Government to standardise planning gain and legitimise its use for betterment recoupment. |
