Tax changes could help Derbyshire regenerate

The key to encouraging development of acres of industrial wasteland in Derbyshire could lie in changes to the tax regime.

The claim comes from Derbyshire and Nottinghamshire Chamber following its involvement in Government consultation on the tax incentives for brownfield land.

Whilst the Chamber agrees there are benefits in extending current tax incentives to sites that are classed as long-term derelict it believes there are deterrents that must be removed.

Chamber president David Merifield said: “It’s not difficult to find large areas of disused land, particular that are crying out to be put to work, and while there may be specific problems for certain sites, a change in the business environment could go a long way to making them productive again.

“The potential introduction of a planning gain supplement could be a huge disincentive to future investment and exempting brownfield land from this tax should be considered.

“We are also concerned about the potential for some local authorities to use Section 106 agreements beyond their stated aims, demanding sums of money based on crude calculations, rather than taking into account the actual circumstances of the site. Business would like to see far more transparency in the development process.”

The Chamber says that provision of major services infrastructure to a site and the costs of decontamination are seen as huge barriers to the development of long-term derelict land, and should be taken into consideration in any tax changes. Relief should also be considered for professional fees required to commission studies into the feasibility of redevelopment/reclamation.

“There is so much that could be done to regenerate derelict areas through relatively simple changes to the bureaucracy that controls them,” said Mr Merifield.

Nationally, one little appreciated problem faced by developers comes from Japanese knotweed, a virulent and damaging plant requiring excavation of the root systems and sterilisation of the ground.