MANCHESTER'S property industry leaders have slammed Gordon Brown for leaving questions unanswered about a new development tax.

Experts say the Chancellor's pre-budget statement has not calmed fears that the tax halt some property development - and therefore damage the city's economic growth.

The Chancellor announced a further round of consultation in relation to Planning-Gains Supplement with a view to making a final decision by spring.

The new tax would be due on land traded by developers, and is expected to come into effect in 2009.

Martin Portnoy, real estate tax director at Deloitte, said: "The government has filled in many of the details as to how they expect PGS to be implemented in practice and this is welcome.

"However the most important questions of all - what rate will PGS be set at and how much will it raise - have been left unanswered.

"There will continue to be a risk that PGS will discourage investment and will therefore be counterproductive."

Jeremy Edge, head of planning for Knight Frank, said: "There is a serious risk that landowners will withhold land from the market in the anticipation that a future administration would repeal the levy. The three new consultation papers now released will inevitably re-kindle the concerns expressed so vehemently last year."

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