A pioneering agreement has been signed to help raise more than £300m towards the growth of Milton Keynes.
The Milton Keynes Infrastructure Tariff is designed to secure forward funding for the infrastructure and services needed to support expansion plans for the new city up to 2016.
Milton Keynes Partnership (MKP) worked with Milton Keynes Council, emergency services, acute and primary care trusts, voluntary and community sectors, further and higher education institutions and the private sector to establish the model.
John Best, Milton Keynes chief executive, told The MJ this is the most exciting development for 30 years in the UK.
‘This is the result of many, many months of close collaboration with Milton Keynes Partnership. We have been working to capture as much value as we can to build into the infrastructure.' he explained.
Established in 2004 to oversee growth, development and investment in the city, MKP is a sub-committee of the national regeneration agency English Partnerships. John Lewis, regional director of English Partnerships Eastern England said it was a ‘unique approach to securing the infrastructure that new communities need'.
The  tariff will allow English Partnerships to act as a ‘banker', providing advanced funding to ensure essential physical and social infrastructure is in place at the right time.
A framework agreement sets out obligations on developers and landowners in the ‘tariffed' areas where around 15,000 new homes are expected, with guidelines on community use, design, construction and environmental standards.
Developer contributions will be £18,500 per residential dwelling, and £260,000 per hectare of employment space.
Jane Lewis, chief operating officer of Milton Keynes Partnership said: ‘The tariff is already bringing enormous benefits to Milton Keynes, and payments totalling almost £3m have been made to Milton Keynes hospital and voluntary sector in the last few months.'