Larnaca Works development

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Wednesday 2 December 2009 5.25pm
Just saw this on the news page (http://www.london-se1.co.uk/news/view/4231)

It's great that something is going to happen to this particular site, but it seems to me that it is a bit unfair on the taxpayer - 4m of taxpayers' cash is being given to the developers to build 90 flats, only 18 of which will be 'social rented' homes.

I wonder whether the government will receive a proportion of the sales from the 72 properties to be sold at market rate? Doubt it somehow.

sadly i can't get onto the Southwark planning website from work so am unable to verify whether the community is likely to be benefit by way of a s.106 agreement - does anyone know?

given the economic downturn, i wonder whether the government could allow me 4m to 'kickstart' my finances!
Friday 4 December 2009 8.49am
My understanding is that Kickstart DOES actually mean that the government (HCA) will get a portion of the profits on the project - it's called clawback.

explanation of Kickstart

[Usually, for 18 homes, the government would shell out up to 2m in subsidy anyway.]
Friday 4 December 2009 10.53am
thank you, Walworther. I wasn't aware of the Kickstart initiative until you pointed it out. However, I have now read into it further I and think (emphasise think) you may be wrong - profit on the site is not shared with the government - it is, according to the "Qualifying Expenditure" criteria, specifically excluded. I have only read that part of the document though. I will read it later but have cut and pasted a hyperlink in case you're interested to the document from the HCA I was reading: www.homesandcommunities.co.uk/.../Gap-funding-and-equity-clawback-worked-example.doc

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