HOUSEHOLDS could be paid a share of the proceeds when new developments are built in their area, under a pilot scheme announced yesterday.
George Osborne said the government would work with industry and local authorities to make sure that households benefit from development in their local area by sharing in the proceeds. The move builds on measures already in place to localise financial benefits and encourage councils to accept schemes close to their homes.
These include the New Homes Bonus – a grant paid to local councils for increasing the number of homes – and the Community Infrastructure Levy, through which councils can charge developers and put the proceeds towards funding neighbourhood projects.
KPMG’s head of infrastructure, building and construction Richard Threlfall, partner said it would “transform” the debate over UK infrastructure and “change the face of Britain”.
“The whole country benefits from schemes like HS2 or fracking in Balcombe, but under the current regime the cost is borne by those whose homes and businesses are affected. A more generous compensation scheme would be fairer all round and is long overdue,” Threlfall said.