Authority leaders say they need new powers and investment to fix capital鈥檚 housing crisis

Local authorities should be able to charge a levy or revoke planning permission for developers who fail to build out approved plans, according to central London council leaders. 

Central London Forward, a cross-party group of leaders of boroughs in the centre of the capital, has published a new report setting out a series of practical changes to the planning system which it claims could help local authorities deliver more homes. 

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As well as these levy-charging and 鈥榰se it or lose it鈥� powers, it also suggested local authorities should be given greater powers for land assembly, including new borrowing powers and the power to undertake compulsory purchases without having to pay 鈥榟ope value鈥� and without the permission of the secretary of state. 

Finally, it said that public investment in planning had fallen by 拢230m in real terms since Labour was last in government and urged the government to restore funding to 2010 levels. 

Jules Pipe, deputy mayor of London, said: 鈥淭he Mayor has made the delivery of the homes Londoners need a priority for his third term. Inevitably the planning system will play an important role in unlocking delivery.  

鈥淭he report鈥檚 focus on planning reforms is welcome, with the resourcing of the planning system and kickstarting delivery of the pipeline of approvals being the key priorities if we are to accelerate housebuilding in London.鈥�

>> Read more: New government sets out plans for housing and infrastructure in first King鈥檚 Speech 

>> Read more: 鈥楽tep in the right direction鈥�: Construction reacts to the King鈥檚 Speech 

While the report emphasised the need for planning reform, which has been a central preoccupation of the new national government, it said that this alone would not be sufficient to tackle the housing crisis. 

鈥淲hile planning reform is necessary, it alone will not be sufficient. We also need to see a renaissance of council housebuilding if we are to deliver on the Government鈥檚 ambitious target, and provide the homes we so desperately need,鈥� said Cllr Kieron Williams, chair of Central London Forward and leader of Southwark Council. 

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