Progress on Community _Infrastructure Levy

This page sets out the development of the Community Infrastructure Levy(CIL) and summaries the various stages and consultations that have taken place. It is clear that the new CIL will have a wide range of implications for how sport & recreation facilities can be secured and delivered through the planning system.

As a result Sport England will continue to has been closely involved in the development of the new Levy as they are produced by Government. The key elements and implications of the proposals are outlined below. These comments include any submissions made by Sport England together with our current thinking on the new system and how it will impact on sport and recreation.

This page will be added to, as the proposals for the new CIL is developed.

Overview
In 2005, the Government expressed its intention to consider the introduction of a Planning Gain Supplement (PGS), to help pay for local infrastructure related to growth (view archive of PGS progress).

In the pre-budget report in October 2007, and after significant consultation, the Government decided to not proceed with the PGS in favour of a Statutory Planning Charge which would come forward in the Planning Reform Bill.

This has subsequently come forward as the Community Infrastructure Levy (CIL). Whilst details of the new CIL have yet to be given in promised Regulations to accompany the Act, the Levy will comprise a charge on most types of new development in an area.

Latest Progess: -
Quick links to:

The new Planning BiIl – currently progressing through Parliament (October 2008)

The Planning Bill contains broad enabling powers to allow local authorities, and other bodies approved by Government, to levy charges to help pay for infrastructure associated with new development. These powers are found in Part 11 of the Bill.

Click here to view the current text of the Bill

The overall purpose of the CIL is to ensure that development contributes fairly to the mitigation of the impact it creates. CIL will be a standard charge, decided by designated ‘charging authorities’ and levied by them on new development. The aim is to set the level of CIL such that it does not deter new development.

The basic provisions

An information paper consolidating the Government’s various statements on CIL, The Community Infrastructure Levy, was published by DCLG in August 2008. The paper states that:

‘…CIL will be a new charge which local authorities will be empowered, but not required, to charge on most types of new development. The charges will be based on simple formulae which relate the size of the charge to the size and character of the development paying it’.

The CIL will;
•cover new residential and commercial development, subject to a low de minimus threshold;
•be based on a costed assessment of the infrastructure requirements arising specifically out of the proposals in the development plan for the area;
•cover refurbishment as well as new build infrastructure, and may vary within local authority areas;
•include regional and sub regional infrastructure, as well as local infrastructure;
•be tested through public participation as part of the development plan preparation process;
•incorporate reserve powers for DCLG to limit the amounts collected and to direct how the funds are allocated as between strategic and local headings.

Definition of infrastructure

The Regulations are intended to define what is meant by infrastructure, with the intention of including a wide definition of infrastructure. Following discussions at the Committee stage, the Government has included a preliminary definition in clause 178 of the Bill. This lists seven types of infrastructure, including:

•Sporting and recreational facilities; and
•Open spaces.

[Other categories include roads and transport, flood defences, schools and education, medical facilities, and affordable housing].

The Community Infrastructure Levy (August 2008)

The August 2008 progress report, clarifies a number of points;

•CIL cannot be used to remedy existing infrastructure deficiencies;
•Regional Development Agencies could provide forward funding for infrastructure and then be re-imbursed from the local CIL income stream;
•Districts, metropolitan and unitary authorities may be charging authorities [This excludes Counties, and Regional Development Agencies];
•Authorities will need an up-to-date development plan to support the scheme;
•Authorities should develop a charging schedule to parallel the development plan;
•The charging schedule is not formally part of the development plan;
•However, the charging schedule should still be subject to public consultation, public inquiry and binding report procedures as with the remainder of the plan;
•Viability testing of charging schedules will be needed;
•The charging schedule should allocate the proposed amount to be raised from CIL to each main class of development;
•The unit of development for charging purposes [e.g; per dwelling, per bedroom, per square foot] remains the subject of investigation;
•Consideration is being given to how far CIL charges may vary within geographical areas, what forms of exception may be allowed and what types of indices for inflation should be applied;
•CIL will be a local land charge.

The process to adoption of CIL proposed by DCLG is:
•The broad enabling powers will be approved in the Planning Bill, which is currently going through Parliament;
•Once the scheme is on the statute book, the intention is to formally consult on the detailed regulations; CLG estimate that this will occur in autumn 2008;
•As the scheme will run alongside a honed down section 106 system, there will be a need for revised planning guidance on planning obligations.

The scheme could, the CLG estimate, be introduced in Spring 2009. However the Government suggest that, because of local circumstances, for example the need for up-to-date development plans, CIL take-up is likely only to occur ‘over an extended period’.

Section 106 Agreements
Consideration is being given to restrictions on Section 106 use. A transitional period would apply it this was done. The provision of land for community facilities may remain within the scope of section 106.

Advice to local authorities for the interim
Before the new system is introduced, the Government is encouraging local authorities to continue the work of developing standard charges, and ensuring there is a good evidence base for both infrastructure needs and priorities.

The CIL document can be view by clicking here: