1 Community Infrastructure Levy Mark Lee

2 Community Infrastructure Levy Introduced in April 2010 as fairer, faster more certain and more transparent. The coalition Government retained the levy and have reformed it through the Localism Act and amendments. Lots of learning already – interested to hear about your experiences today.

3 Progress 10 charging schedules in place (London Mayoral CIL, Redbridge, Wandsworth, Newark and Sherwood, Shropshire, Huntingdonshire, Wycombe, Portsmouth, Poole and Bristol). And many more to come – latest info suggests around 90 councils have progressed work on CIL.

amendment regulations Improve the way CIL operates: amend the relationship between CIL and section 73 applications; correct the operation of two formulas (reg 40 and reg 50); ensure instalment policies set by the Mayor of London and London Boroughs operate in a complimentary way; allow CIL to be chargeable on development granted consent by Neighbourhood Development Orders, including Community Right to Build Orders.

5 Revised statutory guidance Published December Builds on best practice and clarifies some key issues: Ensures the CIL guidance is aligned with the National Planning Policy Framework in England (and reflects Localism Act and regulatory changes); The interaction between CIL and section 106 agreements, including ensuring it is as clear as possible at the point of examination how CIL will be used and how section 106 agreements will be scaled back;

6 Revised statutory guidance Is clear that charging schedules should not threaten the delivery of local plan - including making clear that authorities should ‘show and explain’ how their proposed levy supports the plan and development; and Tightens the viability test at examination and the evidence to support this (for instance, through stronger wording on sampling, particularly of strategic sites) Is more positive about the use of differential rates, including for major sites (where justified by viability evidence).

7 Next steps Localism Act 2011 introduced neighbourhood funding. Nick Boles announced policy in January (see next slide). Aiming for these regulations to be in force in Spring These regulations will also enable MDCs to charge the levy and we’ve confirmed we are not making changes to allow CIL to be spent on affordable housing at this time. Consultation on further reforms planned. Not in a position to say what issues it will cover but based on feedback from those charging the levy and the development industry.

8 Neighbourhood CIL Parish council Neighbourhood Plan = 25% uncapped, paid to Parish Parish council Neighbourhood Plan X = 15% capped at £100 / dwelling, paid to Parish Parish council X Neighbourhood Plan = 25% uncapped, local authority consults with community Parish council X Neighbourhood Plan X = 15% capped at £100 / dwelling, local authority consults with community