In more detail
Community Infrastructure Levy is a tool councils can use to make developers pay towards the cost of infrastructure that enables further development. Part of the money raised by CIL must be spent on priorities agreed with people in the area affected by the development. The proportion is increased in areas covered by a neighbourhood plan.
Developers pay Community Infrastructure Levy (CIL) on new development above a certain size. They must provide information when applying for planning permission to enable the council to work out the amount of CIL which will be due. Councils set their own rates of CIL. In doing so, they have to balance the needs for current development against the need to fund infrastructure to support and enable further development. CIL must then be paid when work on the development site starts ‘on the ground’.
Using CIL
Councils can use CIL to fund a wide range of infrastructure, including: transport, flood defences, schools, hospitals, other health and social care facilities; play areas, parks and green spaces; cultural and sports facilities; district heating schemes; police stations and other community safety facilities. It must be used to fund things which will support the development of the area. It must be used to fund new infrastructure or renew infrastructure on which the development in question depends. It can’t be used to ‘prop up’ existing infrastructure; and it can’t be used for housing.
At least 15% of CIL has to be spent on priorities agreed with the local community in areas where development is taking place. In places where this a parish council, this share is passed to the parish council. In places where there is no parish council, the council consults with the local community about their priorities. When development happens in an area covered by a neighbourhood plan, the minimum to be spent on local priorities – decided by the parish council or through consultation) rises to 25%.
The neighbourhood portion of CIL can be spent on a wider range of things than the rest of CIL: it just needs to be spent on things which will support the development of the area. These rules mean that neighbourhood CIL, unlike the rest of CIL, can be used to fund affordable housing.
There are exemptions from CIL including for self-builders, some social housing, charitable development and vacant buildings brought back into use. Councils can exempt additional types of development from CIL within the area they cover.
The video below is an update on CIL produced by Legal Network TV
Setting a Local Rate for CIL
The process for setting a rate for CIL in an area is: the council holds public consultation on the proposed rates of charges it intends to make; the schedule of charges is examined by a Planning Inspector; the examiner’s report is published; and the charging schedule can then be adopted at a meeting of the full council (not just the planning committee etc). Examples of what different rates of CIL have been set:
- Birmingham has two residential charging zones with rates of £69 and £0 per square metre; two hotel charging zones with rates of £27 and £0 per square metre; two student housing developments charging zones with rates of £69 and £0 per square metre. Large convenience retail developments are charged at £260 per square metre. No charge for all other uses.
- Leeds has four residential charging zones with rates of £5, £23, £45 and £90 per square metre. There are two charging zones for supermarket developments with rates of £110 and £175 per square metre; two charging zones for large comparison retail with rates of £35 and £55 per square metre. City centre offices are charged £35 per square metre. Publicly funded or not for profit developments are not be charged CIL. All other uses are charged at £5 per square metre.
- London Borough of Camden charges CIL on small residential developments at £500 per square metre. There are three large residential development and private care home development charging zones with rates of £500, £250 and £150 per square metre; two student housing development charging zones with rates of £400 and £175 per square metre; two hotel development charging zones with rates of £40 and £30 per square metre. All retail developments are charged £25 per square metre. There are two office development charging zones with rates of £45 and £25 per square metre. There are no charges for industrial, warehousing, or research developments. All other commercial developments are charged £25 per square metre. No charge for all other uses.
- Exeter charges residential developments at £80 per square metre; student housing developments at £40 per square metre. There are two retail development charging zones with rates of £125 and £0 per square metre. No charge for all other uses.
Below is a presentation on Community Infrastructure Levy made by Siedah Martey in 2016:
| Key Facts:
Community Infastructure Levy (CIL) is a charge on developers which acts as a contribution to restoring and improving local infrastructure. That includes things like parks, sports facilities, police stations etc. If your area has a neighbourhood plan, then more of the CIL resulting from development can be kept in the locality (rather than used more widely by the council). But, the council sets the rate for CIL and in some cases may set it at a very low rate (in order to attract developers and investment in the area). The sums derived from CIL for use in the neighbourhood can be quite modest. |
Page Links from here
Planning Portal on Community Infrastructure Levy
An Overview of Community Infrastructure Levy produced by Department for Communities and Local Government and available from the link as a PDF
Resources aimed at local councils explaining CIL are still available from Planning Advisory Service
In the toolkit:
Neighbourhood Planning and Infrastructure Bill
OR you can use the navigation menu above right to look at other parts of the toolkit.
BIRMINGHAM COMMUNITY PLANNING TOOLKIT DEFINITION SHEET This sheet may be reproduced in paper or electromic or any other form but please mention it was made by Chamberlain Forum Limited for Birmingham City Council supported by Department for Communities and Local Government.
| created: 2016-06-18 10:00:07 | by: admin | status: f published |