CIL In London CIL IN LONDON February 2019.

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Presentation transcript:

CIL In London CIL IN LONDON February 2019

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

CIL vs S106 CIL Section 106 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)

CIL, S106 & Infrastructure Planning Requirements to support development including strategic sites Local Plan 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)

CIL in London

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

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

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

75% in 10 Boroughs 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

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

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

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.