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States asked to decide on proposed land development levy

18 October 2017

The Minister for the Environment is to ask the States to agree to the principle of introducing a Jersey Infrastructure Levy (JIL).

Deputy Steve Luce has lodged a report and proposition proposing the introduction of a broad, low and fair charge on most developments on new land.

When planning permission is given to develop land, the land value rises considerably. A levy would allocate a small percentage of the profit from land development to improve the quality of island neighbourhoods affected by new development.

Affordable homes exempt

Under the proposals, non-residential developments under 75 square metres of new floor space (roughly the size of a two-bedroom apartment), affordable homes and charitable trust projects would be exempt.

A set percentage of the levy would be given to the parish in which a development is built to fund parish improvements.

A detailed study with local professional and industry input shows that a levy is workable and would allow construction companies to continue to make a profit on developments. It also allays concerns that house prices would rise to pay for higher land costs.

Workable and fair

Deputy Steve Luce said ‘As we all know, land in Jersey is at a premium and permission to develop immediately makes it more valuable. As more development takes place, particularly in town and in our villages, there will be more need for investment in the streets, public spaces and facilities that help to support local communities and offset the impact of development.
‘I believe that a community infrastructure levy is an open, workable and fair way of securing a small contribution from the landowner who makes a significant profit out of permission for land development.’

If the States approve the principle of the levy, the detail would be developed and agreed at a later stage and come back to the States Assembly for approval. A levy wouldn’t be introduced until after April 2019 at the earliest, to allow developers who have acquired or in the process of acquiring land, to secure planning permission for development schemes.

Link to viability study report

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