SELBY'S economic chief has revealed Government proposals which he claims would force developers to pay a community tax on development land.

Coun Brian Percival, chairman of Selby District Council's economy board, attended a reception at Number 11 Downing Street for local authority economic bosses from across Yorkshire and Humberside.

Tuesday's meeting in the Commonwealth Room at the Chancellor's residence was organised by regional development agency Yorkshire Forward.

Mr Percival spoke with Treasury third-in-command John Healy MP, who revealed proposals for a new development tax.

"It was a worthwhile meeting. We got a good reception," he said.

"There was a strong indication from Mr Healy of a likely new tax on development land, with 70 per cent of the tax-take going to the local authority, and 30 per cent going to the Treasury.

"I've always considered that financial growth should hold hands with community wealth.

"That is to say, if a profit is being made, then a proportion of that profit should go back to the community.

"For instance, if there's a development by the river, there should be money provided to improve riverside paths.

"But I say 100 per cent of this tax should go to the local community and not back to the Government - that way there's a direct contribution to community wealth."

He said he could not give his full blessing to the proposal until he knew how high it would be.

"It cannot be punitive, as then it becomes a disincentive to development," he said.

"I would favour a percentage in single figures on land prices."

Coun Steve Shaw-Wright said he was concerned that any money raised from the tax should be spent in the area where the development took place.

"At the moment, we have Section 106 agreements which tie developers into providing facilities at the development site.

"I would want any tax to work the same way and stay in the area where the development took place, otherwise the money will just be creamed off for district council coffers and not benefit people affected by the development."