Cash paid up front will go towards highways, play areas, community centres, sports facilities, arts and culture, schools, cycleways and other 'physical and social infrastructure’ needs.

It is called the Community Infrastructure Levy (CIL) and has been introduced by Eric Pickles, Minister of State for Housing.

It was endorsed by the Executive of Wokingham Borough Council (WBC) on January 29 and will come into effect for all planning applications after April 6.

The financial bonanza will be a 'funding stream’ used by the council throughout the borough, and not just at the specific development sites.

Mandatory charges to developers and landowners are calculated on floor space and are 'non-negotiable’ in most circumstances.

The CIL does not cover planning applications for conversions and changes of use.

Whitehall chiefs say the new system will be 'faster, fairer and transparent’.

Developers will also be told that 35 per cent of their new homes must be 'affordable’ – normally accepted as 80 per cent of the market value.

Council officials have recommended a charging schedule, setting out a timetable for the council to start implementing CIL, and has sought approval for a list of projects.

Local authorities will be obliged to disclose how they spend the levy every year.

John Kaiser, executive member for planning and highways at WBC, says the money will help the council plan ahead more effectively.

He said: “CIL is a substantial amount of funding, and we have successfully argued for one of the country’s highest CIL rates, which will provide us for the right schools, roads, sports facilities and other facilities for the borough’s new homes.” He added: “Developers will have to make sure that 35 per cent of the properties they build are affordable.”