Oral question asked in the House of Commons, by Lord Stunell (Liberal Democrat). It was answered on Tuesday, 6 June 2006 on behalf of the Department for Communities and Local Government.

Retail Development

Question: The hon. Member for Leicester, East (Keith Vaz) has set the framework for me. The Minister will be well aware that major retail developments often create difficulties for local communities because they lose their diversity of shopping and sometimes jobs as well, not to mention experiencing problems due to congestion. Will he undertake to talk to the Chancellor to ensure that when the planning gain supplement comes along, the money will not simply fill the Treasury’s pockets, but will be sent back directly to local authorities so that they can spend it on saving their communities from the congestion and economic and environmental damage with which such major developments leave them?

Answer: The hon. Gentleman makes a fair point and, indeed, I can give him such an assurance. There was a joint consultation between my Department and the Treasury—indeed, Revenue and Customs. We intend that the bulk of the money should be beneficial—[Interruption.] Let me just clarify the situation before the cynics in the Chamber get too suspicious. The bulk of the money will go to the local authority concerned. The intention in the consultation—we are yet to respond to it—is that there will be a top slice to allow infrastructure investment that does not fall specifically in the local authority area that is directly involved, but from which it will benefit. However, the bulk of the money will go to the council, as the hon. Gentleman suggests.

Secondary information