Developers should not be charged a levy on future building projects in Lynn, according to an inspector.
Proposals to establish a new community infrastructure levy (CIL) on schemes in West Norfolk will go before borough council chiefs tomorrow.
But officials now say there should be no charge on developments in Lynn at all, following an external assessment.
The levy, which may come into effect in February, will impose a charge on new developments in the borough, to fund local infrastructure needs.
The council had proposed charges of £60 per square metre in the north and east of the borough, £40 in southern and western areas and £10 in the unparished area of Lynn.
A report by examiner Philip Staddon, published ahead of Tuesday’s cabinet meeting where the issue will be discussed, raised concerns over whether development of some brownfield sites may be halted by the charge.
He said that, while some sites justified the charge, removing it was the only way he could address the issue.
He said: “CIL should serve a positive economic purpose.
“I do not see how loading additional costs on to already challenged brownfield development sites can serve that positive purpose.”
Lead officer Alan Gomm said the levy was still expected to generate up to £1.6 million a year for 10 years.
But he reported: “It is clearly disappointing we are not able to make a charge in the King’s Lynn unparished area.
“However, the examiner has heard the evidence and has made a recommendation in the light of that evidence.”