Community Infrastructure Levy Planning Advisory Service Gilian Macinnes October 2013 www.pas.gov.uk.

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Presentation transcript:

Community Infrastructure Levy Planning Advisory Service Gilian Macinnes October

What is PAS ? PAS is a DCLG grant-funded programme but part of the Local Government Association Governed by a ‘sector led’ board 10 staff – commissioners, generalists, support “PAS exists to provide support to local planning authorities to provide efficient and effective planning services, to drive improvement in those services and to respond to and deliver changes in the planning system”

It is all about delivery Growth Viability – including developer/landowner motivation Mitigation - Infrastructure Community expectations Policy requirements – e.g. affordable housing

S106 Obligations S106 is not replaced by CIL Old reality – pre 2008 New reality-post 2008:  Times have changed – viability  Times have changed - legislation

CIL

What is CIL for? To help pay for infrastructure needed to support new development But not to remedy existing deficiencies unless the new scheme will make it worse District/unitary Councils must spend the income on infrastructure – but they can decide what Neighbourhood proportion – neighbourhood parish decide what to spend it on

Tax by another name Applies to all development that involves ‘buildings that people normally go into’ Includes permitted development (it doesn’t have to follow a planning permission) Once set, council’s can’t pick and choose which developments to charge

Infrastructure evidence To charge a CIL a Local Authority has to demonstrate that there is insufficient funding available to deliver the infrastructure necessary to support growth The CIL regulations do not force Local Authorities to prioritise specific infrastructure categories or projects The CIL regulations encourage Local Authorities to set-out against which infrastructure items they will collect CIL and which items they will not use S106.

The rate(s) - Viability ‘In proposing levy rate(s) the charging authority should show that the proposed rate (or rates) would not threaten delivery of the relevant plan as a whole. They should also take into account other development costs arising from existing regulatory requirements, including taking into account of any policies on planning obligations in the relevant plan (in particular those for affordable housing and major strategic sites)…’ Para 29 CIL Guidance 2013

Rate(s) ‘Charging authorities should show…that their proposed charging rates will contribute positively towards and not threaten delivery of the relevant plan as a whole at a time of charge setting and throughout the economic cycle.’ Para 30 CIL Guidance April 2013

Differential rates “..Differences in rates need to be justified by reference to the economic viability of development. Charging authorities can set differential levy rates for different geographical zones provided that those zones are defined by reference to the economic viability of development within them..” Para.34 CIL Guidance April 2013 “An authority could set differential rates by reference to both zones and the categories of development within its area. “ Para.36 CIL Guidance April 2013

Charging authorities 21 authorities have adopted - (August 2013)

Lessons from round the country- CIL in Context CIL will probably only account for c.5-10% of areas infrastructure costs … so consider it as just one part of your strategic infrastructure planning to manage growth … and remember that CIL accounts for 3-5% of development costs

AREARESIDENTIALRETAIL-COMMERCIALOTHER CHARGES Portsmouth£105 £ (offices and industrial developments are exempt ) £53 -Hotels and residential institutions Shropshire£ Newark & Sherwood£0-75 £ Retail £0-20-Industrial £45-65 Redbridge£70 Wandsworth £0-575 (for 4 charging zones) £100 (in 2 Nine Elms zones) - Huntingdonshire£85 £ Retail £45- Nursing Homes £60- Hotels £65- Health Facilities Bristol£50-70 £120 (commercial uses are exempt) £70- Hotel, £100 - Student £50- other chargeable development Barnet£135 Plymouth £30 (city centre is exempt) £100-Superstores only £60- Student accommodation (city centre is exempt )

Golden Thread Golden thread of evidence Projects used in CIL Infrastructure Evidence should be drawn from the infrastructure planning for the area. Information on infrastructure needs to be directly related to the infrastructure assessment that underpins the plan Evidence to prove the funding gap needs to be directly linked to the delivery of the plan Infrastructure evidence needs to be directly related to the regulation 123 list.

Purpose 123 list “double dipping” is a concern for Developers Regulation 123 is the requirement for a published list of infrastructure projects or types of infrastructure that the Charging Authority intends will be, or may be, wholly or partly funded by CIL, …put another way the authority cannot collect s106 to spend on items within the Reg 123 list

S106 and CIL – the approach

Infrastructure Delivery Resolve approach to delivering infrastructure across the area based upon efficiency of delivery and compliance with regulations The approach to CIL vs 106 and regulation 123 list will be one output of that process – needed to set the CIL

Recent Examinations- Greater Norwich Development Partnership – ‘.. the rates proposed for residential development are too high and would pose a significant threat to the viability of housing development in the area.’ Mid Devon - The rate proposed for residential development does not reflect the Council’s target for the provision of affordable housing (as set out in the Development Plan) and because the rate is set too high, there is a serious risk to affordable housing provision and thus the overall development of the area

Spending CIL and Delivering Infrastructure – working together

Supporting the delivery of the growth strategy

CIL is a small part of the suite of capital funding Business rate retention and NHB likely to be higher Should be factored into existing capital programme governance Other sources of funding

Tough decisions CIL might give enough money for that long awaited – politically popular- skating rink BUT Is that the best way to make new development sustainable and acceptable to the community? OR should the CIL money go to the neighbouring authority for a new transport link in their area that improves access for the new growth in your area? Or should a number of areas pool their money to provide effective infrastructure. OR should a number of parishes, District and County councils work together to provide a piece of infrastructure to improve the lives of the wider community.

The proportion Parishes now have buying power But this is not new money

25 25% uncapped paid to Parish 15% capped at £100 / dwelling paid to Parish 25% uncapped local authority consults with community 15% capped at £100 / dwelling local authority consults with community Neighbourhood CIL Allocation Parish NO Parish Neighbourhood PlanNO Neighbourhood Plan

A Local Authority must use CIL receipts to fund the provision, improvement, replacement, operation or maintenance of infrastructure A local council (parish, town) can also spend CIL on anything else that is concerned with addressing the demands that development places on an area. A local council does not have to publish a list of infrastructure priorities A local council does not have to spend their proportion of CIL on the priorities identified for their area Spending CIL

Synergy “Potential ability for people or groups to be more successful working together than on their own” Collins pocket English Dictionary

Questions?

PAS web site Community Infrastructure Levy- web pages: cil Case studies: studieshttp:// studies

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