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The government has decided to delay the full introduction of its proposed new Infrastructure Levy by up to 10 years, causing some to question whether the policy will ever see the light of day.

Late last Friday, the Department for Levelling Up, Housing and Communities (DLUHC) issued a consultation on the Levy, which is designed to largely replace the use of section 106 agreements to secure planning contributions, in which it said it wanted to introduce it via a 10-year 鈥渢est and learn鈥� period.

The also made clear the government intends the mandatory Infrastructure Levy will be charged at the point a scheme is completed, to maximise returns, and said councils would be able to require a proportion of the levy be delivered 鈥渋n kind鈥� via on-site affordable housing.

The government said it recognised that moving from the current system, whereby councils secure payments for local infrastructure and affordable housing from developers via a combination of Section 106 agreements and the Community Infrastructure Levy, to the new Levy 鈥渞epresents a significant change鈥� and said previous attempts to change systems of developer contributions had been stymied by too rapid implementation periods.

鈥淕iven this combination of factors, the government will introduce the Levy over an extended period through a 鈥榯est and learn鈥� approach鈥�, the consultation said, with the levy piloted first in a 鈥渞epresentative minority of planning authorities before nationwide rollout.鈥� It added the 鈥渢est and learn鈥� period will last for 10 years.

The extended implementation timeframe follows concern from the industry over the impact of the policy on the housing sector, particularly in terms of the delivery of affordable housing.

In the last three years, an average of 48% of the new affordable homes built in the UK have been provided by section 106 contributions, according to government data.

Housing secretary Michael Gove said the infrastructure levy would give local leaders 鈥渢he tools to bring forward more affordable housing and the transport links, schools and GP surgeries鈥� while 鈥減utting an end to lengthy negotiations with developers [that are] seeking to shirk their responsibility to provide for local people鈥�.

But the extended implementation period, combined with the complexity of the policy, the political situation of the current government, and the Labour Party鈥檚 opposition to it, has caused some to question whether it will ever see the light of day.

Planning consultant Catriona Riddell, also subject specialist for the Planning Officers Society on strategic planning, said: 鈥淭here are questions about whether it鈥檚 going to be able to deliver what it鈥檚 supposed to deliver. It鈥檚 so complicated, particularly when you think about how this work in two-tier authorities and Combined Authority areas.

鈥淓ven assuming the Conservatives get back in, on the timescale they鈥檝e set out, it鈥檒l be years before they get it operating efficiently, if they ever do. People are asking is it going to happen.鈥�

Riddell鈥檚 comments come after Labour鈥檚 shadow housing minister Matthew Pennycook last month confirmed that any future Labour government would not take the policy forward, due to fears over the impact on affordable housing supply.