Developers, house builders, local authorities and professional planners have welcomed publication by the Government of the amended regulations for the Community Infrastructure Levy (CIL), the new development charge due to be introduced in April.
CIL is a new power that allows councils to raise funds from developers alongside new building projects to help build infrastructure such as new schools, hospitals, roads and transport schemes as well as libraries, parks and leisure centres.
The new system will give developers certainty over the contributions they have to make to support local communities when they plan projects, ensuring that developers pay a fair share towards new local services that are needed.
The regulations, just published in Parliament, will allow councils to raise potentially an extra £700m a year, where councils choose to use the new regime. CIL is intended to replace the existing planning obligation arrangements based on s106 agreements.
The new system has been the subject of discussions with interested parties over the last 18 months. Key features of the final regulations include:
* allowing up to 100 per cent CIL relief in exceptional circumstances for developments that would otherwise not proceed.
* allowing payments of CIL to be made in-kind in the form of land provided that land is transferred with the intention of providing infrastructure.
* doubling the standard payment period to 60 days to ease cash flow for developers; and allowing payment by installments in many cases.
* introducing the potential for local authorities to borrow against future CIL receipts to allow infrastructure provision to be unlocked earlier in development, subject to the overall fiscal position of the country.
* providing additional reliefs for developing charities in line with the Government’s commitment to the voluntary and community sector.
* providing 100 per cent exemption from CIL for most types of affordable housing.
* enabling authorities to draw the administrative costs of CIL from CIL receipts.
