Affordable housing plans must be backed up by funding for community infrastructure if they are to succeed across the country, according to the Local Government Association (LGA).

Sir Sandy Bruce-Lockhart, chairman of the LGA said: “There is no question that the supply of affordable housing must be increased. However, it is already alarmingly clear that centrally imposed targets for new developments are being held back by a yawning gap in the funding needed by local authorities to provide the community infrastructure, such as roads and schools, required to support them. Because of this, local communities are often justifiably sceptical of new developments."

“If new housing developments are to be successful, and achieve communities that people want to live in, the government must look urgently at overcoming the issue of funding them properly. So that essential services such as roads and schools can be delivered to new communities when they need them - not years down the track.”

A range of radical options for plugging the gap in infrastructure funding for new developments have been proposed by the Association and include allowing business taxes from new developments to be ploughed directly back into local communities rather than going to the Treasury. The proposals are not about increasing taxes but about a more effective distribution of the current taxation system so that local needs can be met by their local authority.

For new housing development to succeed, the consent of local people is crucial. The only way forward is to ensure elected and accountable local authorities are central to the process and can enable funding for community infrastructure like new roads, new schools and other local facilities. That way, housing development will not only be more sustainable, and in harmony with local communities, but will also proceed more quickly, because instead of local people and councils fighting it, they will be leading it from the start.

The government is very good at imposing housing targets but not so good at looking closely at how these communities will be delivered for the benefit of all. Developers and local authorities that represent the interests of local people, should have an incentive to work in partnership - a tax on the profits of development gives such an incentive.

The Association’s proposals encourage developers, local authorities and public agencies to work together to ensure that development and local facilities go forward at the same time.

Sir Sandy concludes, “We are not talking about increasing current taxes on developments but about localising regimes to ensure a better connection between local people and new developments. Funding retained locally for community needs is likely to draw strong support from the public for affordable housing and regeneration schemes.”