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Planning Gain: A Theoretical Note

Department of Town and Country Planning, Trent Polytechnic, Nottingham, UK

Much of the recent debate concerning planning gain has been concerned with it as a reflection of the increased legal and administrative power of local planning authorities. This note concentrates on the economic power of an authority to extract gain; that power is seen, in a competitive framework, to rest on both the elasticity of the derived demand for land and the authority's commitment to have its own plans implemented. In such a setting, even though the authority may decide whether a development can take place, that in itself does not give the authority any particular power to extract planning gain.

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