Profit Cap Mechanism – PCM

🟢 Phase 1: Immediate Action via Existing Tools

Introducing Transparent, Consistent Guidance for Development Profit Transparency

🟡 Phase 2: Local Policy Innovation and Pilots

⏱️ Total Rollout Duration (Trial-to-SPD Adoption):
✅ Immediate launch via Cabinet pilot: 1–2 months
📋 SPD formalisation: 6–9 months

1. Pilot SPD on Profit Transparency and Fair Return
2. Tiered Developer Contributions Based on Profit Levels
3. “High-Impact Site” Classification Criteria
4. Affordable Housing Delivery Escalator
5. Early Viability Disclosure for Tilted Balance Sites
6. Public Access to All Viability Data in Registry

🔵 Phase 3: Enforceable Profit Caps and National Policy Reform

1. Local Plan Policy on Profit Caps
2. Developer Preference Framework
3. Enforceable Profit Cap in Planning Conditions or S106
4. National Reform Campaign
5. Relative Impact Threshold Policy