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Update on Community Infrastructure Levy (CIL)

Date: 25/11/2010

Recently announced changes

The Community Infrastructure Levy Regulations came into effect on 6th April 2010. Following the General Election in May, the Coalition Government has been reviewing whether to continue with the Levy and what, if any, amendments it should make.

CLG Minister Greg Clark announced on 18th November that CIL would be continued, with amendments which would: 

  • Ensure that a 'meaningful proportion' of funds raised goes directly to local communities 
  • Restrict the binding nature of examiners reports to ensuring rates are not unreasonably high 
  • Allow Councils to be more flexible on payment deadlines eg deferred or instalment payments to improve development viability 
  • Remove the threshold of £50k for payments in kind

These amendments can only be implemented through changes in the regulations, or in the case of funding local communities, primary legislation in the form of the Localism Bill. As such they will come into force incrementally as they are enacted. In the meantime the regulations remain as per 6th April.

What hasn't changed

  • Clear intention that contributions to infrastructure through planning will be through CIL rather than S106 in the future 
  • CIL should be based on an up to date development plan - expectation that this will be an adopted Core Strategy (or whatever may supersede them!) 
  • Applies to all development over 100 sq m 
  • Should be set at a reasonable level on the basis of evidence of infrastructure needs and  which takes account of viability 
  • Differential rates can be applied geographically or for types of development where justified by economic viability 
  • Considerable flexibility on spending - as long as on infrastructure 
  • Affordable housing and charities exempt 
  • No change to statutory test of S106 obligations 
  • No change to limitations on pooling of S106 obligations which effectively phases out S106 based tariffs after April 2014 
  • For London, Mayor has power to levy CIL for transport facilities incl Crossrail 
  • 5%  of CIL income can be used for admin expenses incl set up costs

Full details can be found on the CLG website at http://www.communities.gov.uk/planningandbuilding/planningsystem/communityinfrastructurelevy

Graham Jones, POS Convener Infrastructure     

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