An infrastructure think tank has suggested that residents should receive compensation if they suffer detriment from nearby development.
The report has been submitted to ministers considering reform of the Town and Country planning system as part of the government’s Growth Agenda.
The scheme is based on legislation in the Netherlands, which has proved successful in stimulating new development projects over the past 12 years.
Dutch residents have received €20 million compensation per annum, averaging €10,000 per successful claim. This would equate to an average £8,000 in Britain.
The total cost of introducing the scheme in England and Wales is estimated at £80 million a year, for a three-year trial.
The cost to government could be even less if existing incentives under Section 106 schemes, the Community Infrastructure Levy and New Homes Bonus are reallocated to the new system, says the study.
“Changing the system to compensate those who can prove detriment would be fairer to them and help unblock Britain’s clogged planning system,” says the report.
The plan recognises that there is a big benefit to economic regeneration arising from development and the uplift in value ought to be properly shared with residents in the area.