Feature

The Community Infrastructure Levy—key points

The Community Infrastructure Levy (CIL) is a financial charge which local planning authorities are entitled (but not obliged) to charge on development in their area. Liability is calculated by reference to the time when planning permission first permits development. The money raised is to be spent on local infrastructure.

Legislation

CIL came into force on 6 April 2010 through the Community Infrastructure Levy Regulations 2010 (CIL Regulations), SI 2010/948. The CIL Regulations have been amended several times since, and in March 2018 the government opened consultation on further reforms to the CIL Regime.

Guidance

Communities and Local Government has published an overview of CIL, which explains the key features of the levy, its rationale, purpose and how it will work in practice.

Charging and collecting authorities

In England, CIL charging authorities are district and metropolitan district councils, London borough councils, unitary authorities, national park authorities, The Broads Authority, Mayoral Development Corporations and the Mayor of London.

In Wales, charging authorities are the county and county borough councils and the national park authorities.

These bodies all prepare relevant Plans (the Local Plan in England, Local Development Plan in Wales, and the London Plan in London) for their areas, which include assessments of the infrastructure needs for which CIL may be collected.

The ‘collecting authority’, as defined by reg 10, is usually the same as the charging authority, with some exceptions:

  • in London, London boroughs collect CIL on behalf of the Mayor

  • county councils collect CIL charged by district councils on developments for which the county gives consent

  • Homes England, urban development corporations and enterprise zone authorities can also be collecting authorities for development, with the agreement of the relevant charging authority

Infrastructure

There is no exhaustive definition of infrastructure. Each individual charging authority must determine this in its particular area. It can include:

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FYI

Sir Oliver Letwin recommends additional layer of planning control for large sites with high housing demand to increase diversity and build-out rates

On 29 October 2018, Sir Oliver Letwin published his final report of the independent review of build-out rates, setting out a series of recommendations to increase the rate at which housing is delivered on large sites. Sir Letwin favours the introduction of an additional layer of planning control for large sites in areas of high housing demand, requiring such sites to increase the types, designs and tenures of housing offered on such sites. The government announced at the 2018 Budget that it will respond to the recommendations made by Sir Oliver in 2019. The final report of Sir Oliver’s independent review of build-out rates, published on 29 October 2018, can be found here.

Government to make further changes to the Community Infrastructure Levy regime

The government has published its response to the consultation on reforming the current system of developer contributions, focusing on the Community Infrastructure Levy (CIL) and section 106 planning obligations. In its response, the government commits to further welcomed changes to the Community Infrastructure Levy Regulations 2010, SI 2010/948 (the CIL Regulations). See News Analysis: Government to make further changes to the Community Infrastructure Levy regime.

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