Our response to the technical consultation on the Infrastructure Levy

We’ve responded to the Department for Levelling Up, Housing and Communities’ (DLUHC) consultation on the Infrastructure Levy, which sought views on the technical aspects of its design.

The Levy, which was introduced as part of the Levelling Up and Regeneration Bill, is the government’s proposed new way of calculating developer contributions towards affordable housing and infrastructure, and will look to replace current arrangements under Section 106.

Summary of our response

Since the announcement of the Levy, we have always been clear in our conversations with the government that the delivery of on-site affordable housing must be protected under any proposed plans and changes to legislation. We do not believe that the Levy does so, and we have continued to raise serious concerns about the ability of the Levy to deliver affordable housing at the levels the country needs, and that it risks a significant reduction in the delivery of affordable housing.

In our response we outline our reasoning behind these concerns, our recommendations to ensure that the delivery of affordable housing is protected, and where we believe the government could provide further clarity.

We welcome the government’s proposed “test and learn” approach for introducing the Infrastructure Levy, and believe is the only real way to objectively decide if the Levy system is appropriate.

Earlier this year, we wrote to the Secretary of State for Levelling Up, Housing and Communities, Michael Gove MP, expressing our initial concerns around The Levy. We have since written to the Secretary of State again, joining 30 organisations to call on the government to reconsider its plans.