Community Infrastructure Levy To Be Optional
The Government announced last week further details of its plans for the groundbreaking Community Infrastructure Levy (CIL). The levy will provide the means to seek contributions to fund necessary infrastructure as a consequence of development such as highway improvements and new schools.
The proposals make the levy optional for local councils so that it increases flexibility to shape communities and support growth. The Government believes the levy will also offer greater certainty to industry because the charges will be consulted on, independently examined, and published in a local charging schedule. This will provide a step change from the existing system of lengthy negotiated agreements, creating transparency, fairness and certainty for the development industry, and ensuring that CIL levels stimulate, rather than choke development.
Gareth Pinwell, partner at South West law firm Foot Anstey commented “Clearly the introduction of the levy could add further costs into any development proposal. However the discretion as to when it is introduced, and the requirement to examine any proposed levy through the development plan process is welcome. It will give everyone affected by it the opportunity to challenge the nature and make up off the levy.
“We could see neighbouring council’s taking completely different views. For example Devon could decide not to use the levy but Cornwall does. Will that mean Devon will attract more development as the costs will be lower? Consideration needs to be given as to how the process will be co-ordinated in adjoining authorities”
CIL will normally run in parallel with the development plan for the area that sets out the broad aspiration for the area in planning terms and the infrastructure needed to support development.
Any council setting the levy will need to have an up to date development plan, usually a Local Development Framework. It will need to cost the infrastructure supporting the development in its plan and take into account other sources of central government funding.
The levy proposal will be scrutinised as part of the local development framework process by public examination and consultation.
Once approved the levy will set clear amounts of contribution for developments whether on the basis of square metres for industrial premises or per dwelling for residential development.
Gareth Pinwell adds “The levy will add to the upfront costs for developers as it will be triggered by the commencement of development on site and payment will be due within 28 days, although for phased development there may be flexibility to defer payment.
“In cases of non payment it is proposed to use a system similar to Stop notices in planning if development is proceeding without payment of the levy. The developer will be served with a stop notice which will have criminal sanctions imposed for non compliance.”
Contact Gareth Pinwell for further information and advice
Published 14/08/2008
