Politics
Preston Referendum on City Infrastructure Levy: Direct Effects on Household Rates
Preston residents face a September 2026 vote on a proposed levy that would apply to new residential developments and feed into local service budgets.
How we reported this
Preston City Council will place a ballot measure before voters on 10 September 2026 to introduce a community infrastructure levy on qualifying new homes. The measure would require developers to pay a per-unit charge, with proceeds directed to the council’s capital programme for roads, drainage and open spaces. All 147,000 residents within the city boundary are eligible to vote.
Why the vote is scheduled now
National changes to the planning system have increased the number of large housing permissions granted in Lancashire. Preston’s existing section 106 agreements have not kept pace with the scale of approvals, leaving gaps in local funding. The council’s 2025-26 capital budget shows £4.8 million already committed to infrastructure, yet officers project an additional £12 million shortfall by 2029 if no new revenue stream is created.
Policy analysts at the North West Local Government Association note that the levy would apply only to schemes above ten units and would be collected at the point of first occupation. For an average three-bedroom home priced at £220,000, the charge is expected to total £6,500, paid by the developer rather than the purchaser.
Impacts on daily services and costs
Revenue would be ring-fenced for projects inside Preston. Examples listed in the council’s consultation paper include resurfacing the A6 corridor through Fulwood, expanding play areas in the Deepdale ward, and improving cycle paths along the River Ribble. Residents in private rented accommodation would see no immediate change to their rent, while owner-occupiers would continue paying the existing council tax bands unchanged by the levy itself.
Local advocates from the Preston Tenants Union have highlighted that any reduction in the number of new homes built could tighten supply and exert upward pressure on rents over time. The legislation requires the council to publish an annual report detailing levy receipts and project spending, with the first report due in March 2028.
The government says the policy will generate £3.1 million in its first full year if the measure passes. Voters will receive an information booklet by post in August containing the exact wording of the question and a summary of the council’s spending plan. Turnout at the last city-wide referendum in 2019 reached 34 percent.