Jersey Infrastructure Levy (land development charge)

About the consultation

The Minister for the Environment is proposing the introduction of a broad, low and fair charge called a Jersey Infrastructure Levy to ensure that when land is given permission for development, the owner or developer contributes a small amount of the profit to essential community infrastructure.

When planning permission is given for development of land, the permission itself generates an increase in the value of the land. A levy would allocate a small percentage of the profit from land development to improve the quality of neighbourhoods affected by new development. A report on the levy shows it is workable and would allow construction companies to continue to make a profit on developments.

Examples of what it could fund include:

• new and improved streets, safe play spaces and recreational facilities, parks, tree planting and community gardens, such as the Millennium Town Park and the Weighbridge
• improvements to public transport services and facilities, like more bus shelters and improved services
• pedestrian improvement schemes and new footpaths, such as improvement to town streets already completed in Conway Street and Broad Street
• new cycle routes, such as the Eastern Cycle Network or the St Peter’s Valley Cycle Path
• improvements to make local areas more resilient to climate change, by introducing sustainable urban drainage schemes to help manage surface water; more tree planting to provide shade and cooling; and better flood defences.

A set percentage of levy would be given to the parish in which the development is built to fund parish improvements.

The proposed rate has been set at £85 per square metre on new developments which create over 75 square metres of new floor space – roughly the size of a two-bedroom apartment. It is proposed that affordable homes and development carried out by charitable trusts would be exempt from the charge.  These rates are expected to generate between £1.5m and £2.5m a year and the fund would be managed by the Minister for the Environment to ensure that it is used for the delivery of essential community infrastructure to improve the quality of urban neighbourhoods and parish centres.

A report 'Jersey Infrastructure Levy proposal' provides detailed background on the draft proposal. A viability study provides the detailed analysis of the case for introducing the levy in Jersey.

How to submit comments to the consultation

This consultation is now closed