Community Infrastructure Levy

 

What is the Community Infrastructure Levy?

The Community Infrastructure Levy (CIL) is a locally set charge (levy) that came into force on 6 April 2010 through the CIL Regulations 2010 (as amended). The CIL is a charge that local authorities in England (known as "charging authorities") can place on new development in their area. The money generated through the levy will contribute to the funding of infrastructure to support development growth in south Worcestershire. The CIL is being jointly prepared by the three south Worcestershire Councils of Malvern Hills District Council, Wychavon District Council and Worcester City Council.

The CIL is intended to supplement other funding streams to ensure that new community infrastructure can be provided to support local growth and to give councils and communities more choice and flexibility in how infrastructure is funded. Infrastructure proposed to be funded (in full or in part) by the CIL is established through a Regulation 123 list. The primary purpose of the list is to ensure that there is no duplication between CIL and other infrastructure payments such as Section 106 agreements (planning obligations).

Pooling Restrictions on Planning Obligations

Councils have a choice whether or not to implement a CIL. However, a key driver for change is that through CIL regulations, the existing system of Planning Obligations under Section 106 of the Town and Country Planning Act 1990 (as amended) is being scaled back. With effect from 6 April 2015, the CIL regulations restrict the use of Section 106 agreements by prohibiting the pooling of contributions from five or more sources for a specific infrastructure project or a type of infrastructure that is capable of being funded by the levy, dating back to 6 April 2010. Planning Obligations also need to pass three legal tests (known as CIL Regulation 122) in order to constitute a reason for granting planning permission. Section 278 agreements (for paying the costs of highways work) do not have restrictions on the number of contributions that can be pooled.

Neighbourhood Funding

A portion of CIL levy receipts (15% or 25%) will be passed onto Parish or Town Councils, which will then have control over how it is spent. A 25% share is dependent on a neighbourhood plan being in place. In un-parished areas (applicable to some areas of Wychavon District and Worcester City), the 15% of the levy receipts will be held by the charging authority, who will then engage with the communities where development has taken place and agree with them how best to spend the neighbourhood funding. For areas with no neighbourhood plan, the 15% share is capped at £100 per existing council tax dwelling per year. For areas with an adopted neighbourhood plan, the 25% share of levy receipts is uncapped.

Supporting Evidence

The South Worcestershire Infrastructure Delivery Plan (SWIDP) identifies the infrastructure needed to deliver the growth set out in the South Worcestershire Development Plan (SWDP). The levy will help to fund these requirements.

The CIL also needs to be informed by viability evidence. The south Worcestershire authorities need to be able to explain how their proposed levy rate (or rates) will contribute towards the implementation of the SWDP and support development across the area by striking an appropriate balance between the additional investment needed to support development and the potential effects on the viability of development.

The Infrastructure Delivery Plan and viability evidence documents are available to view on the CIL Examination - Submission Documentation page.

CIL Stages and Timetable

In order to introduce a CIL, the south Worcestershire Councils are required to carry out two consultation stages prior to submission for examination. These are:

•Preliminary Draft Charging Schedule (PDCS); and

•Draft Charging Schedule (DCS)

Further details relating to all CIL consultations carried out to date can be found on the CIL consultations page.

The south Worcestershire Councils have progressed through the PDCS and DCS stages and subsequently submitted the CIL for joint examination on 26 July 2016. Please visit the CIL Examination - Submission Documentation page for more information. A statement of modifications consultation preceded submission and ran from Monday 25 July to Friday 26 August 2016.

The current production timetable, as set out in the latest Local Development Schemes (LDS) published in October 2015, is set out below. The timetable is subject to revision via an updated LDS, anticipated for autumn 2016. The revised dates below are therefore subject to approval of the updated LDS, and progress made with the Independent Examination.

  • Publication of Draft Charging Schedule (Regulation 16) – March 2016

  • Submission (Regulation 19) – July 2016

  • Independent Examination –  August 2016 (now November 2016 – the examination hearing sessions will be held on 29th and 30th November 2016 at the Guildhall in Worcester)

  • Receipt of Examiners Report (Regulation 23) – November 2016 (anticipated January 2017)

  • Adoption (Regulation 25) – December 2016 (anticipated February 2017)

  • Levy Takes Effect (Regulation 28) – January 2017 (anticipated April 2017)

Further information relating to the hearings can be found on the CIL Examination page of the SWDP website.