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Greg Clark admitted yesterday that the government was re-thinking its proposals to localise the payment of planning application fees by developers.

The planning minister said the government was worried that the plans, set out in a consultation in November 2010, meant developers would be unable to get a clear answer on how much they will have to pay to submit a planning application.

Clark said the government was now working with the Local Government Association (LGA) to determine a series of 鈥渂enchmark鈥� levels for planning fees, before coming out with new proposals.

Clark鈥檚 comments came during a seminar at which a number of developers called for clarity on the issue with the director of the 拢8bn Earls Court regeneration project revealing the developer, CapCo, had already 拢2m on planning fees.

Clark said: 鈥淎s minister for decentralisation I think decisions should be taken as locally as is reasonable. However, it becomes unreasonable if you couldn鈥檛 get an answer as to how much fees are now going to be. It turned out to be very difficult to discover what fees would be.鈥�

鈥淚t鈥檚 an area where, having called for greater decentralisation, we鈥檙e not actually in a position to introduce it.鈥�

The 2010 consultation said that the majority of councils received less in planning fees than they spent processing applications, and aimed to address this by allowing councils to set their own fees dependent upon local costs.

Clark said the work with the LGA would determine 鈥渨hat systems might need to be established鈥� to create planning fees that 鈥渞eflect the work required [by the local authority].鈥�

He refused to say when the government would set out revised plans but said he will be saying more 鈥渋n the months ahead.鈥�

Gary Yardley, investment director at CapCo, said the system needed to be reviewed as the firm had spent 拢2m under a planning performance agreement with Hammersmith and Fulham council regarding the Earls Court development 鈥渁nd now we are being told we鈥檝e got to pay more because it鈥檚 going to take longer.鈥�

He said: 鈥淐urrently there鈥檚 no workable structure in place 鈥� any clear guidance would be a good thing.鈥�