Community Infrastructure Levy S106 and S278 vs CIL July 2014

Contents Why is it important? The regulations and what it means for you When to use each tool – decision tree Golden thread Developing an approach vacancy test CIL spending

Why is it important? Your approach to the on-going use of S106 and S278 impacts on: –Viability evidence –Infrastructure evidence –Regulation 123 list So pretty much everything required to pass a successful CIL examination!

Regulation 122Regulation 123 TimingFrom April 2010From adoption of charging schedule or 6 th April 2015 whichever is earlier ImpactIntroduction of three legal tests (a)Necessary to make the development acceptable in planning terms; (b)Directly related to the development ;and (c)Fairly and reasonably related in scale and kind to the development. Granting planning permission cannot be dependent on a S106 or S278 for infrastructure on reg 123 list Cannot pool from more than five separate S106 planning obligations Limitations on pooling for infrastructure begins from 6 th April 2010 No limitation on pooling for S278 agreements The regulations?

What does this mean for you? From April 2015 you will only be able to pool S106 on a very limited basis If a CIL is not in place your council is at risk of significantly reducing income from developer contributions

Decision tree Will it be delivered on a strategic site? S106 on-site mitigation or CIL in-kind Does the site alone generate the need for the infrastructure? Does the facility need to be delivered on that site? yes Does the Council need to pool contributions from more than five developments to pay for the infrastructure? no CIL (general funding) yes Is the infrastructure item/ type in the IDP Other Source no yes no yes Is it CIL eligible Is there likely to be a funding shortfall that requires developer contributions? no Is it a normal development cost yes no yes no Whether to use CIL in-kind or s106 is a matter of preference Developer pays Other sources may include grants, enterprise zone, LEP funds, New Homes Bonus.

If you understand which mechanism you will use to deliver infrastructure on each of your sites you can generate a regulation 123 list. Relevant Plan Infrastructure Evidence CIL Infrastructure Evidence Regulation 123 List Funding GapProject List 123 golden thread

Developing an approach To do this will require you to: Review existing planning permissions, S106/S278 agreements Have discussion with development management colleagues and developers Have discussions with County (two-tier authorities) Consider the financial benefits of switching to CIL (in theory there should be no difference..) Consider how you can use the new infrastructure in lieu and phased payment provisions

Community Infrastructure Levy LA Experience

Examples - Huntingdonshire Regulation 123 list linked to Infrastructure Business Plan Specific definitions of CIL and non CIL funded projects

Examples - Wycombe Have created suite of documents to support reg 123 list: –CIL and planning obligations funding decision protocol – Sets out process and protocol for allocating CIL funding –CIL spending programme – Sets out projects set to receive CIL in this financial year –Section 106 developer contributions spending programme – Sets out amounts and project allocations over two year period –CIL funding available – Sets our indicative amounts and infrastructure type allocations for next financial year

Examples - Shropshire Highly detailed reg 123 list listing individual projects 18 place plans that prioritise the infrastructure needs at a local level

Community Infrastructure Levy Game

Overview Gigglesworth is a District Council in the county of laughamptonshire Development is dispersed across of number of sites, some of them strategic The Council is developing a CIL as part of a broader planning obligations strategy

Objectives You need to determine which infrastructure item will be delivered by which mechanism CIL/ S278 and S106 At the end of the exercise you should have a draft regulation 123 list

Tips 1.Methodically go through each site and determine whether you will use CIL, S106 or S278 to deliver the infrastructure 2.Use your understanding of the three legal tests and pooling restrictions to pick the appropriate mechanism 3.If CIL is going to be used for everything then the reg 123 list will be generic 4.If S106/S278 is going to be used for everything then the reg 123 will be very short!

Round-up What is on your regulation 123 list and why?

Community Infrastructure Levy End