New homes threat to green belt

RADICAL proposals to release public green belt land to ease the housing crisis are being considered by ministers.

Officials believe the scheme could pay for itself, as land can rocket in value if it is re-designated for housing.

The Treasury could also use part of the windfall gain currently enjoyed by developers when they are granted planning permission for housing.

The scheme is being considered for next month’s Budget and may be discussed at a housing summit due to be convened by Theresa May in Downing

Street tomorrow with developers, councils and housing associations.

However, some Cabinet ministers are opposed to any move that would weaken protection for the green belt.

At the summit, the PM will also tackle ‘land banking’ – blamed for hindering housebuilding as private firms sit on valuable plots that have planning permission. A government source said Mrs May would be ‘laying down a challenge’

to developers over the issue in a ‘robust but constructive way’.

England’s 14 areas of green belt land cover about one-eighth of the country and were supposed to prevent urban sprawl. Despite its name, only part of the land consists of green fields.

A study found that agricultural land could soar by up to 150 times its value if it was granted planning permission.

Ahead of the Budget, ministers are also considering helping town halls build a new generation of council houses, replacing tuition fee debt with a graduate tax and cutting income tax rates for the under-30s.

One government source yesterday said Chancellor Philip Hammond wanted to unveil a ‘radical Budget – something that is a big offer to the nation’. They added: ‘It means memorable stuff that changes thinking and changes people’s futures.’