Chancellor George Osborne has said more should be done to allow local communities to benefit financially for accepting the approval of nearby planning projects.
He said the current system, whereby developers offer services or amenities if their applications were approved, was inadequate.
And he said the government will put in place a system where economic benefits of major construction and development deals were passed on to the local taxpayer.
Osborne said as it stands, there is “no incentive for a local community to accede to a planning request”.
He added: “They see none of the economic gain that comes from planning decisions.
“I see this all the time as a constituency MP, families and communities get together and petition against planning decisions because there is absolutely nothing in it for them.”
The chancellor said the government wanted to “tilt the balance” so that communities stood to benefit directly from major projects which they might otherwise oppose.
“We want to change the incentives in planning so there are direct economic benefits for local communities,” he said, suggesting that that could be done through council tax or business rates.
He added: “I think that will then tilt the balance so there is a positive incentive to go ahead with development.”