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This panel discusses the newly introduced Community Infrastructure Levy (CIL) and its implications on development planning, charging schedules, and funding for infrastructure. It also explores the scaling back of planning obligations and the need for a spending plan for CIL funds. Join the discussion groups to provide input on infrastructure types to include, pricing the levy, evidence base development, and distribution of the levy.
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Community Infrastructure Levy (CIL)Development Policy Panel 25 February 2010
What is CIL? • A charge on development which can be used to help fund infrastructure. • Draft regulations only at this time. • Regulations come into force in April 2010.
Four main features: • A Charging Schedule, which identifies the infrastructure required to support development. • A mandatory charge, calculated in accordance with the charging schedule. • Scaling back of the existing system of planning obligations. • It provides a framework for pooling contributions.
Setting the Levy – the Charging Schedule This will set out: • The likely infrastructure requirements needed to support the levels of development in the development plan (Core Strategy). • The funding available to deliver the required infrastructure and therefore any gaps. • A levy on development to make up the total shortfall identified above. • Assessment of likely impact on development viability.
Setting the Levy – the Charging Schedule • The regulations leave it for local authorities to determine what constitutes infrastructure. • The CIL excludes affordable housing.
Setting the Levy – the Charging Schedule • Charging schedules must be prepared in accordance with the draft regulations and will be subject to an Examination. • A key aspect of the examination will be the likely impact on development viability.
Calculating and Paying CIL • CIL is to be levied on buildings, rather than on development generally. • The proposed charging unit is per square metre (gross) • There will be a de minimis threshold of 100m² for commercial property • Householder development will be largely exempt.
Calculating and Paying CIL • The levy payable on each development will be calculated at the time planning consent is given for any new building or change of use. • The levy will be due when development commences.
Spending CIL • The regulations contain little detail on spending CIL • Provides a framework for pooling contributions. • Annual report on the amount received and how it was spent.
Scaling back of Planning Obligations • CIL will be accompanied by a scaling back of planning obligations allowed under section 106. • Likely to limit the application of section 106 planning obligations to the provision of affordable housing and the provision of works which make each individual development acceptable. • Transitional period of four years from the commencement of CIL.
Lack of choice • The restriction on the use of planning obligations is likely to mean the Council will have little choice but to implement CIL.
The need to prepare a charging schedule and setting a CIL charge • The Council will have to work collaboratively with service providers to bring forward a charging schedule. • The CIL charge will have to be calculated in accordance with the charging schedule. • Development viability will be a key issue.
Preparing a spending plan • Mechanisms will have to be put in place to consider how CIL funds are allocated and spent.
Discussion Groups. 1. What types of infrastructure would we want to include in CIL? 2. How do we build up the evidence base of infrastructure requirements? 3. How do you price the levy? 4. How do you develop a spending plan and distribute the levy?
