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Understanding Community Infrastructure Levy (CIL) in London: Regulations, Collection, Expenditure, and Reforms

Learn about CIL's tax on development, comparison with S106, collection, spending in London boroughs, key points, and upcoming reforms.

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Understanding Community Infrastructure Levy (CIL) in London: Regulations, Collection, Expenditure, and Reforms

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  1. CIL In London CIL IN LONDON February 2019

  2. What is CIL? • Tax on Development • Regulations published 2010 • First London charging 2012 • Now covers 30 of 33 Boroughs and Mayor • Intended to replace ‘tariff type’ S106 • Flexibility for Boroughs to spend • Can be used for capital and operational funding • Neighbourhood proportion can be used for anything that supports development in the area

  3. CIL vs S106 • CIL • Fixed Levy • ‘Cumulative Impacts’ of development across area • Can be spent on any infrastructure at Charging Authority’s discretion • ‘Local Proportion’ – 15% or more in area local to development • Section 106 • Negotiated legal agreement • On and off site (if meets tests) • Must be necessary, directly related, fair and reasonable (Reg. 122) • Limitations on pooling, restricts ‘tariff type’ contributions (Reg. 123)

  4. CIL, S106 & Infrastructure Planning Local Plan Requirements to support development including strategic sites Viability Assessment (Plan Wide and Strategic Sites) Planning Obligations/ Requirements Infrastructure Delivery Plan/Framework CIL Charging Schedule Funding Gap Viability Assessment (CIL) Types/Projects List of Relevant Infrastructure (Regulation 123 List)

  5. CIL in London

  6. How much has been collected and spent? Borough CIL Collection & Expenditure: 2011/12 to 2017/18 £433 million £120 million Source: Quod review of Borough CIL Annual Reports for Boroughs where available

  7. How much has been collected and spent? Borough CIL Collection: 2011/12 to 2017/18 Source: Quod review of Borough CIL Annual Reports for Boroughs where available

  8. How much has been collected and spent? Borough CIL Expenditure: 2011/12 to 2017/18 Source: Quod review of Borough CIL Annual Reports for Boroughs where available

  9. Who Has Raised CIL? 4 Authorities, Half of Borough CIL Wandsworth: £95.7 million Brent: £50.7 million Tower Hamlets: £39 million City of London: £27.5 million 2 £20 million Pus Lambeth: £20.6 million Barnet: £20.4 4 £13 plus million Islington: £18.6 million Westminster: £17.5 million Hackney: £16.5 million Camden: £13.3 million 75% in 10 Boroughs

  10. What has it been spent on? Half on: Half on: Education £19.2 million Roads, Pavements & Public Realm £26.8 million Indoor & Outdoor Sport £19 million Transport £22 million Parks and Open Space £7.6 million Everything Else £22.4 million Source: Quod review of Borough CIL Annual Reports for Boroughs where available, identified items

  11. CIL Reform • Closed 31 January • Likely to be implemented this year • Removal of Regulation 123: • Pooling Restriction • R123 list • More detailed requirements for monitoring and reporting CIL and S106 collection and expenditure

  12. Key Points for Parks and Open Space Officers • Get involved in infrastructure planning: influence the plan for on and off site requirements; • Identify specific projects: promote in internal funding allocation mechanisms; • Reg. 123 list not that important, being on it doesn’t mean projects will be funded, internal funding process much more important; • Think at different scales: • Neighbourhood: are their trusts of voluntary organisations who can promote local projects? • What strategic sites are coming forward and what can be promoted? • Be aware of internal processes and expenditure – watch out for underspends or opportunities; • Be reasonable and flexible in S106 negotiations, developers often like parks and open space so work with the grain, think about specific improvements; • CIL will be cyclical – receipts tied to market trends so watch out for downturns.

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