| The 2010 Community
Infrastructure Levy (CIL) Regulations were introduced by the previous Labour Government in April 2010 and are already in force. CIL is a new local levy that local authorities can choose to introduce to help fund infrastructure in their area.
When implementing CIL, local authorities have to set out proposed CIL rates in a charging schedule which sits alongside the Local Development Framework. CIL rates will be charged per sqm of net additional increase in floor space. A new build or enlargement of less than 100 sqm (except one or more dwellings) is not subject to CIL. There will be a three year transitional period to 6 April 2013 before CIL will be charged on development enabled through Permitted Development Orders.
Once a CIL charging schedule is effective, a Section 106 Agreement is not able to include any infrastructure which is to be wholly or partly funded by CIL. A Section 106 will still be used for elements which cannot be funded by CIL, such as affordable housing.
Regulation 122 of CIL expects that “a planning obligation may only constitute a reason for granting planning permission if the obligation is:-
- necessary to make the development acceptable in planning terms;
- directly related to the development; and
- fairly and reasonably related in scale and kind to the development
The main news from the Localism Bill is that the Community Infrastructure Levy is to be retained but with modifications. An overview of CIL is provided in CLG's November 2010 overview paper and some (but not all) of the changes are contained in the Bill.
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The material changes in the Localism Bill introduced in December 2010 are as follows:
- allowing CIL funds to be passed to neighbourhoods where the development has taken place
- CIL would now be able to be spent on ongoing maintenance of infrastructure, not just its initial provision
- if changes are needed to the schedule, the local authority will be able to make different amendments to an examiner’s recommendation
On the horizon is the fact that local authorities who carry on with the current system of planning obligations will be driven to adopt the “voluntary” CIL charging schedule as it outlaws use of Section 106 tariff agreements from April 2014.
Only a few weeks ago there was more uncertainty with the news that Boris Johnson has published a preliminary draft CIL charging schedule for consultation, especially in relation to Crossrail. The Levy will be paid by most new development in Greater London which has 100 sqm or more of gross internal floor space and includes different rates for different Boroughs.
Guidance in the form of draft regulations is needed to allow local authorities, communities and neighbourhood bodies to make use of the provisions. A question which needs to be asked is how will neighbourhood bodies deliver infrastructure and could this lead to a reduction of money being available for major infrastructure if communities use this money for play spaces, sport facilities and recreation areas.... |
