savills.com CIL Latest Research & Findings Lizzie Cullum, UK Development

Intro Overview- CIL PAS Event National Overview North Focus April 2015 & S. 106 Pooling Restriction Q & A

The Savills Team

CIL Progress National Overview

CIL Across England & Wales (All Stages) Savills -

Source: Savills (as at 23 rd March 2015) Progress on CIL Implementation (England & Wales)

North of England

Northern England - CIL Progress Map

5 North England - CIL Progress In Numbers Implemented 3 Submitted for Examination 1 Draft Consultation 5 Preliminary Draft Charging Schedule 9 Preparing Evidence 28 Not Started Correct as of 23 rd March % of Local Authorities engaged with CIL in the North of England Only 8 Northern LPAs Authorities anticipated to have implemented CIL by the end of 2015

April 2015 – Pooling Restriction

savills.com Why is it an issue? April 6 th 2015 Regulation 123 introduces a Section 106 pooling restriction for ALL local planning authorities post-6 th April 2015 Deadline will NOT be extended – Government Response to CLG Select Committee Report (NPPF Operation) “Local Planning authorities have therefore had considerable notice of the pooling restriction and the opportunity to consider its potential effects locally” NB: Bank holiday means 2 nd April is effectively the date that planning decision notices need to be issued by

Projections on number of implemented CILs Source: Savills (February 2015) Only 24% of LPAs anticipated to have a CIL in place by the end of April

How to advise on this ? YES NO CIL Charging Schedule in place BEFORE 6 April 2015? ‘Regulation 123 List’ outlines what types or projects Section 106 is restricted. This is not a commitment to spend CIL but will help to define types and projects. (Reg. 123 (2)) Plus – need to be confident that the limit on the number of planning obligations has not yet been reached. (Reg. 123 (3)) In both cases. Regulation 122(2) tests will need to be satisfied for the planning obligation to be lawful 24% of LPAs 76% of LPAs No Reg. 123 List. Most if not all infrastructure obligations restricted ? The test is the need to be confident that the limit on the number of planning obligations has not yet been reached. (Reg. 123 (3))

So what does this mean in practice? Section 106 lives on, but is restricted... 24% of LPAs  CIL implemented  Greater scope to define infrastructure priorities (Reg. 123 List)  Potential for salami-slicing (NB: matter of FACT and DEGREE) VS

So what does this mean in practice? Section 106 lives on, but is restricted... 76% of LPAs  No CIL in place  Only Reg. 123 (3) applicable  Section 106 obligations effectively limited to affordable housing and non-infrastructure items NB: Definition of infrastructure as per 2008 Planning Act, including “Roads & Other Transport Facilities, Flood Defences, Schools & Other Educational Facilities, Medical Facilities, Sporting and Recreational Facilities and Open Spaces”

Implications?

savills.com Savills Regulation 122/123 Paper Commissioned by the Home Builders Federation (HBF) Prepared jointly with Charles Russell Speechlys Focused on highlighting issues facing the development industry post-5 th April 2015 and offering guidance for LPAs

The Disclosure Schedule INCLUDE All obligations entered into on or after 6 th April 2010 Agreements entered in to with the County Council (two tier authorities) Obligations included in unilateral or multilateral agreements Revoked permissions, unimplemented permissions, extant permissions EXCLUDE Section 278 agreements

Practical interpretation of Regulation 122 & 123

Advice to clients...  Be aware of unreasonable salami slicing  Pooling restrictions apply District-wide not Parish or Ward-wide  Planning obligations can fall outside pooling restrictions if not a reason for granting planning permission  Reasonable wording required on planning conditions  Key test is whether the scheme is “acceptable in planning terms”  Not having a CIL in place and the 2010 CIL Regulations should be a material consideration

savills.com Visit