Introduction of an Infrastructure Charging Mechanism in Scotland: research project

This research focuses on the options for an infrastructure charging mechanism.


Affordable Housing Defined in Planning Policy as “housing of a reasonable quality that is affordable to people on modest incomes…in the form of social rented accommodation, mid-market rented accommodation, shared ownership, shared equity, discounted low cost housing for sale including plots for self-build, and low-cost housing without subsidy”
Business Rate Supplement ( BRS) Business Rate Supplements Act 2009 makes provision for county councils, unitary district councils and the Greater London Authority to levy a supplement on the national non-domestic rate (or business rate).
Charging Authorities ( CA) With respect to CIL, defined in the 2010 Regulations as a “the collecting authority for CIL charged in its area”. Is normally the Local Planning Authority.
City Deals City Deal is an agreement between government and a city. It gives the city and its surrounding area certain powers and freedom to take charge and responsibility of decisions that affect their area, to do what they think is best to help businesses grow, to create economic growth, and to decide how public money should be spent.
Department for Communities and Local Government ( DCLG) Governmental Department in England and Wales tasked with driving up housing supply, increasing home ownership, devolving powers and budgets to boost local growth in England and supporting strong communities with excellent public services
Government Economic Strategy ( GES) Scotland’s Economic Strategy, updated in 2015, sets out an overarching framework for a more competitive and a fairer Scotland and identifies four broad priority areas where our actions will be targeted to make a difference, included inclusive growth, innovation, investment and international investment, influence and networks.
Gross Development Value ( GDV) The value of a development on the open market once all development works have been completed.
Gross Development Cost ( GDC) The cost of a development.
Growth Accelerator Model ( GAM) Economic investment tool developed by Scottish Futures Trust. Reportedly has the potential to unlock £6bn of additional investment in cities and regions across Scotland. The model effectively creates the right conditions for different types of public and private sector investment to be made against a backdrop of economic growth and opportunity. Features include:
  • Funding linked to demonstrable and sustained economic growth and job creation;
  • Establishment of a training academy; and
  • Long-term developer profit share.
Land Value Capture ( LVC) A type of public financing that recovers some or all of the value that public infrastructure generates for private landowners.
Planning Authority ( LPA) Have primary responsibility for the delivery of the planning service in Scotland. Planning authorities undertake key pieces of work to inform stakeholders about the service they deliver.
National Planning Framework 3 ( NPF3) Published by Scottish Government’s Planning and Architecture division, the National Planning Framework ( NPF) sets the context for development planning in Scotland and provides a framework for the spatial development of Scotland as a whole and sets out the Government’s development priorities over the next 20-30 years and identifies national developments which support the development strategy
Non-Domestic Rates ( NDR) Business rates (also called non-domestic rates) are a tax on business property to help pay for local council services. They are based on the property and generally don't reflect the turnover or profits of the business.
Planning Gain Supplement ( PGS) Supplement to S106 obligations considered in England and Wales in 2006. Viewed as potential mechanisms for increasing resources for investment, though ultimately rejected as alternative systems viewed as more appropriate to fund local infrastructure projects, and the potential impact of a ‘tax’ on areas of lower demand.
Public Works Loan Board ( PWLB) A statutory body operating within the United Kingdom Debt Management Office, an Executive Agency of HM Treasury. PWLB's function is to lend money from the National Loans Fund to local authorities, and to collect the repayments.
Regulation 123 Lists Abbreviation of requirement in Regulation 123 of the CIL Regulations (2010). It refers to the list of infrastructure projects a requirement of CIL Regulation 123 and is known as a 'Regulation 123 list', or 'R123 list' for short.
Residual Land Value Assessed value of land based on the value of a completed development (Gross Development Value) less development costs and developers profit.
Review of Scottish Planning September 2015, review panel appointed by Scottish Ministers to undertake an independent review of the Scottish planning system, tasked with providing a ‘root and branch’ review, and encouraged to explore game-changing ideas for radical reform of the system. Published in May 2016.
Scotland Act 1998 An Act of the Parliament of the United Kingdom which established the devolved Scottish Parliament. It is amended by the Scottish Parliament (Constituencies) Act 2004, the Constitutional Reform Act 2005, Scotland Act 2012 and Scotland Act 2016
Scottish Planning Policy ( SPP) Document published by Scottish Government’s Planning and Architecture division setting out national planning policies which reflect Scottish Ministers’ priorities for operation of the planning system and for the development and use of land.
Section 106 Agreements Section 106 of the Town and Country Planning Act 1990. Agreement between a developer and a local planning authority about measures that the developer must take to reduce their impact on the community. Required to make development acceptable in planning terms.
Section 75 Agreements Section 75 of the Town and Country Planning (Scotland) Act 1997. Agreement between a developer and a local planning authority about measures that the developer must take to reduce their impact on the community. Required to make development acceptable in planning terms.
State Aid State aid is any advantage granted by public authorities through state resources on a selective basis to any organisations that could potentially distort competition and trade in the European Union ( EU).
Tax Incremented Financing ( TIF) Public financing method used as a subsidy for redevelopment, infrastructure, and other community improvement projects, based around a value capture strategy. First employed in the USA in 1950s.
Town and Country Planning (Scotland) Act 1997 The principal piece of legislation governing the use and development of land within Scotland.


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