The new community infrastructure levy to be imposed on developers is more likely to be used to fund small-scale sewerage works than bankroll a new school.

That was the message from Policy and Reform Minister Chris Thomas this week - but he also admitted surprise to find government departments could not agree exactly what the money should be used for.

The Town and Country Planning (Amendment) Act last year paved the way for the introduction of the community infrastructure levies, which would be imposed on the companies behind new developments to ensure their schemes brought in wider environmental, economic or social benefits.

But Mr Thomas warned, if the levy followed along similar lines as in the UK, it would bring in only up to about £400,000 a year.

’Let’s not fantasise about that amount of money being used to pay for a new school,’ he said. ’Let’s be realistic. We are talking here about connecting up sewers, we are talking here about a little bit of infrastructure to make the community better.

’We are not talking about saving the whole of the Isle of Man public expenditure by raising loads of money.’

Mr Thomas was responding to questions in the House of Keys this week. He said a further consultation would need to be carried out when the fine details of the proposed scheme were finalised, but he was still hopeful that ’something worthwhile’ would be ready by the end of the year.

However, he admitted that government departments had struggled to agree on the best approach.

That stemmed back to when the commitment to introduce the levy was first made in an action plan in 2018, following an earlier consultation.

Even then there was ’complete lack of agreement about the shape, the nature of the community infrastructure levy, even between the departments of government’, he said.

detail

’Back in 2017-18 it was clear that people wanted a community infrastructure levy but once we got into the detail of who should pay it and what it should be used for, it became 50-50 at best, and often a quarter here, a quarter there.’

The issue was raised on Tuesday by Lawrie Hooper (LibVannin, Ramsey), who expressed concern at the pace of introduction.

’I am quite surprised that we are going to be going through yet another consultation process,’ he said.

’I am also quite surprised at the apparent lack of consensus within government on a work stream that has been ongoing now for more than two years.’

Mr Thomas said a further consultation was required under the legislation. He added that officers in the government departments had been working hard to come up with a viable scheme. But he admitted he had been caught out by the lack of consensus.

’However you want to think of it, it is a levy, it is a new tax - it is quite a serious thing to do,’ the Minister said.

’The normal principle of that sort of thing is to make sure you have absolute consensus and I am surprised at the differences between the different pools of officers about what this money should be used for.’