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Legislation to raise revenue from rezoned land

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WQ.87/2024

WRITTEN QUESTION TO THE MINISTER FOR THE ENVIRONMENT BY DEPUTY H.L. JEUNE OF ST. JOHN, ST. LAWRENCE AND TRINITY

QUESTION SUBMITTED ON MONDAY 18th MARCH 2024 ANSWER TO BE TABLED ON MONDAY 25th MARCH 2024

Question

“Following the adoption of paragraphs (a) and (b) of P.14/2023 as amended, will the Minister provide a timeline for the introduction of legislation to raise revenue for the States from any uplift in value of land arising from when the land is rezoned or from when planning permission has been granted?”

Answer

I am currently unable to provide a timeline for the potential introduction of legislation to enable the operation of a development levy in Jersey.

Notwithstanding the approval of the States Assembly to: explore the introduction of a mechanism in order to create a Sustainable Communities Fund (Proposal 7 - Bridging Island Plan); and to agree that a fair charging mechanism should be introduced to raise revenue for the States from any significant uplift in the value of land arising from when the land is rezoned or from when planning permission has been granted (P.14/2023 as amended), the work required to be undertaken, to develop an appropriate charging mechanism and the legislation required for it to operate, remains unfunded and cannot, therefore, be progressed.

As set out in the Council of Minister’s amendment to the original proposition, resources are required to research, analyse, consult stakeholders and provide recommendations to the Council of Ministers on the options for a charging mechanism for the uplift in value from granting planning permission or rezoned land. In particular, specialist expertise is required to: assess the viability of introducing such a charge, relative to the costs of undertaking development in the island and; to recommend a form of charging mechanism that is appropriate for Jersey, having regard to the experience of other places in attempting to establish similar.

A bid to secure the funding for the work that is required to be undertaken, which was programmed for 2024 in order to meet the timeline established by P.14/2023, was made as part of the Government Plan 2024-2027, but was unsuccessful.

In such circumstances, this work will remain pending until such time that resources are made available to enable it to be undertaken.