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Local Government Reorganisation

In this section

A public consultation has been launched over proposals for changes to councils across Worcestershire as part of the biggest shake-up of local government in more than 50 years.

The Government is requiring 21 areas of England to restructure their system of local government before 2029. 

There are two parts to the Government’s proposed changes: 

Local Government Reorganisation: where the Government is looking to replace Bromsgrove District, Malvern Hills District, Redditch Borough, Worcester City, Worcestershire County, Wychavon District and Wyre Forest District Councils with fewer councils. 

Devolution: where the Government is looking to transfer powers and funding to new Strategic Authorities (also called Combined Authorities) that cover a number of new council areas and are responsible for large projects such as transport, infrastructure, and economic development. 

The proposals

Two plans for Local Government Reorganisation in Worcestershire have been submitted to the Government.

One Worcestershire: this would create a single unitary council to run all services for the county. It is being proposed by Worcestershire County Council and Wyre Forest. You can find out more about the One Worcestershire LGR proposal on the county council's website.

Transforming Worcestershire: this involves creating two unitary councils - a North Worcestershire Council and a South Worcestershire Council - to run all services for their part of the county. This is the option put forward by us, Bromsgrove District, Malvern Hills District, Redditch Borough and Worcester City Councils.

You can click or tap the button below to read the Transforming Worcestershire Plan in full. You can also read on for a brief overview of our proposal and its key features.

The Government has now launched a public consultation into the two proposals, running up to 26 March 2026


What we are proposing

Our Transforming Worcestershire plan is focused on unlocking real and lasting change that will deliver truly better outcomes for our residents, businesses, and public sector partners.

This is a once-in-a-generation opportunity to use the five councils’ proven track record of doing things differently through shared services, to build a strong, sustainable future for everyone in Worcestershire.

We will do this through creating two new unitary councils to deliver all services in a set area. These will replace the current six district councils and Worcestershire County Council.

  • A North Worcestershire Council (including the areas covered currently by Bromsgrove District, Redditch Borough and Wyre Forest District Councils).
  • A South Worcestershire Council (including the areas currently covered by Malvern Hills District, Wychavon and Worcester City Councils).

We will deliver this change through:

  • Shifting public services from crisis response to a prevention-focused approach.
  • Driving long-term financial sustainability through a focus on outcomes.
  • Creating communities that feel more connected and empowered by keeping decision-making close to them.
  • Delivering local services that respond faster to everyday issues.
  • Reshaping support for vulnerable adults so they can live healthier, happier and safer lives.
  • New approaches to supporting children and families, enabling them to stay together.
  • Providing young people with better access to skills and jobs.
  • Housing provision that doesn’t just provide shelter but supports healthier lives.
  • Economic strategies tailored to the needs of people and businesses in local areas, to unlock growth.

Our vision is to shape a thriving Worcestershire, north and south, where every community flourishes and public satisfaction drives everything we do.

Through bold local leadership and the power of devolution, we’ll unlock opportunity, remove barriers, and deliver services that truly reflect the needs of our people and places.

By creating two dynamic councils rooted in local identity, we’ll build vibrant, sustainable communities where residents and partners can grow, connect, and succeed.

We are committed to creating a local and responsive Worcestershire, driven by what works best for each unique area.

Strengths of our proposal

Our plan offers the Government a clear choice between a rebranded version of what we have now with no guarantee anything will change

OR

the opportunity to embrace our proposal and deliver a renewed, responsive, and resilient local government for Worcestershire that works for people.

There are several key strengths to our proposal.


  • It’s what local people and partners have asked for

    Our proposal is the only one in Worcestershire that has been consistently shaped by residents, staff, councillors, parish and town councils, and partners from the start.

    4,249 people and organisations took part in the Shape Worcestershire engagement during the summer. Of those who expressed a view, 62.5% preferred two councils (north and south) rather than one big council.

  • Decisions stay closer to communities

    During the public engagement exercise you told us you were concerned a single large council would be too remote and may overlook the needs and concerns of individual areas because of its broad focus.

    Our proposal address this by having two councils that are closer to the people, more visible, accountable and responsive. The number of residents per councillor is also lower than with a single large council. All this means decisions will be taken closer to the people affected by them.

  • Strengthened community power and engagement

    Our model preserves and builds on the strong track record of the borough, city and district councils in working closely with communities and voluntary groups to design preventative local services.

    New Neighbourhood Area Committees will give residents, town and parish councils and local partners a real say in how money is spent and which issues are prioritised in their area.

  • Services built around people not bureaucracy

    Our model is based on delivering real and lasting change by designing services around local people and places.

    There is a strong focus on shifting from crisis response to prevention so we deal with problems earlier, in the community, before they become more serious and more expensive.

  • Respects the differences between North and South Worcestershire

    During the public engagement you were clear that there are significant differences between North Worcestershire, which is more urban and with closer links to the West Midlands, and more rural South Worcestershire with important market towns and a strong tourism and agricultural economy.

    Creating two councils allows us to reflect these differences to create tailored approaches to jobs, transport, housing and growth that work for each area, instead of imposing a one-size-fits all model that can overlook these differences. Our model also allows us to continue to collaborate and work together where it makes sense to do so and is underpinned by a commitment to ensure all of Worcestershire thrives.

  • Keeps what works locally and adds sensible sharing where needed

    Our proposal allows for a hybrid model – delivering local services where being close to communities matters, with the ability to share services for complex or specialist areas (for example some parts of adult and children’s social care) where that delivers better value and consistency.

  • Offers a credible and sustainable financial plan

    The two-council model is expected to deliver approximately £16.23 million of gross savings and approximately £9 million a year of net revenue (day-to-day spending). The payback period is about 3.9 years. Savings will come from cutting duplication of services, using economies of scale in staffing, procurement (buying good and services) and infrastructure.

    While this is less than the alternative single unitary proposal, we are clear lasting savings cannot be made simply from cuts alone. Our transformation approach – delivering more prevention, better outcomes and reduced demand especially in high cost services – could deliver additional savings that would be locked in.

    We have tested our financial modelling against other reorganisations programmes and are confident it is realistic and credible.

  • Supports devolution and a stronger voice for Worcestershire

    The model supports the Government’s ambition for devolution, in particular to have a directly elected mayor for Worcestershire and partner councils in a combined strategic authority. Having two placed based councils (north and south) strengthens Worcestershire’s voice, allowing for the differing needs of the county to be argued for and addressed, which risk being lost with just a single, large, remote unitary council.

  • Offers a clear, phased plan to make the change safely

    We have a clear plan to make sure services delivered by the two councils will be safe and legal from day one. There will be strong programme management, governance structures and ongoing engagement with residents, staff and partners to keep services safe and stable while change happens.


What happens next

The two proposals for Local Government Reorganisation in Worcestershire were submitted by the deadline of 28 November 2025.

The Government will hold a public engagement exercise on the proposals in early 2026. A decision on which proposal will be chosen is expected in July 2026.

Elections to a ‘shadow’ council or councils’ is expected in May 2027 with the new council(s) taking over the running of services from 1 April 2028.

Stay up to date

You can stay up to date with all the news on LGR, and other Malvern services, by signing up to our latest news resident e-newsletter.

If you haven’t signed up before then please click the button below:

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Read more …Local Government Reorganisation

Corporate Peer Challenge

In December 2024, we participated in a Corporate Peer Challenge run by the Local Government Association.

Corporate Peer Challenge is a tried and trusted tool for improvement offered to councils. It involves a team of senior local government officers and councillors spending time at a council to provide challenge, offer feedback and share learning. 

All Corporate Peer Challenges focus on the five core components listed below:

  • Local priorities and outcomes
  • Organisational and place leadership
  • Governance and culture
  • Financial planning and management
  • Capacity for improvement

In addition, we asked our peer team for some feedback about our Connected Communities Strategy and the council’s approach to asset-based community development, along with some other service-based areas we think we can improve on.

During their three-day visit to Malvern Hills, the team gathered information and views from more than 45 meetings, went on two tours of parts of the district and carried out further research and reading. They spoke to more than 100 people, including employees, councillors and a range of our partners, external organisations and residents.

The peer team’s report provides a summary of the team’s findings. It is generally very positive, including comments on the approach we have adopted through our Connected Communities work, which the peer team considered to be a nationally significant Asset Based Community Development (ABCD) Programme.  We welcome the positive feedback and the useful areas for improvement and recommendations.

document Read the Feedback Report. (2.76 MB)

We had until mid-June 2025 to put in place an action plan to respond to the nine recommendations included in the feedback report. This action plan was approved by our Executive Committee.

Read the CPC Action Plan.

The peer team revisited us in January 2026 to assess our progress with implementing its recommendations. The team has now produced a final progress report.

pdf Read the final CPC Progress Report. (640 KB)

Media and Press Enquiries

For media and press enquiries, contact the Communications Team:

Please email This email address is being protected from spambots. You need JavaScript enabled to view it. 

Please note the Communications Team only deal with enquiries from the media. Members of the public should contact the relevant department for their enquiry, more information can be found on the Contact Us page.

Communications Team

The MHDC Communications Team is responsible for liaising with the media, corporate communications, reputation management, social media, internal communications, website content, marketing solutions, video content, and more.

The team also design and produce the annual Malvern Hills Residents’ Magazine which promotes the wonderful work of the community, as well as the council’s services and events.

pdf Read the 2024 version of the Malvern Hills Residents’ Magazine. (17.26 MB)

To keep up to date with what is going on at Malvern Hills District Council by signing up to our email alerts and keep an eye on our Latest News section on the website.

Creditor Performance

Creditor Performance 2024/25

Invoice Paid within 30 Days – 5239

Total number of invoices – 5339

98.13%

Interest paid to suppliers due to late payment – Nil

Creditor Performance 2023/24

Invoice Paid within 30 Days – 4228

Total number of invoices – 4110

97.21%

Interest paid to suppliers due to late payment – Nil

Creditor Performance 2022/23

Invoice Paid within 30 Days – 3859

Total number of invoices – 3795

98.34%

Interest paid to suppliers due to late payment – Nil

Creditor Performance 2021/22

Invoice Paid within 30 Days – 3369

Total number of invoices – 3286

97.54%

Interest paid to suppliers due to late payment – Nil

Creditor Performance 2020/21

Invoice Paid within 30 Days – 2946

Total number of invoices – 2826

95.93%

Interest paid to suppliers due to late payment – Nil

Creditor Performance 2019/20

Invoice Paid within 30 Days – 3405

Total number of invoices – 3285

96.48%

Interest paid to suppliers due to late payment – Nil

Creditor Performance 2018/19

Invoice Paid within 30 Days – 3808

Total number of invoices – 3697

97.09%

Interest paid to suppliers due to late payment – Nil

 

Community Infrastructure Charging Levy Consultation

In this section

The consultation is now closed.

This is the draft Community Infrastructure Charging Levy document for the three South Worcestershire Councils (Malvern Hills District, Worcester City and Wychavon).

A public consultation on the proposals in this document is now closed.

You can read the document using the section headers below. Paper copies are available from libraries in Malvern, Tenbury, Upton, Worcester (The Hive), St Johns, Warndon, Pershore, Evesham, Droitwich Spa and Broadway, as well as The Guildhall in Worcester and the Civic Centre in Pershore.

  • Background

    In 2010 the Government introduced the Community Infrastructure Levy (CIL) as the preferred mechanism for securing development contributions towards infrastructure to support growth in an area.

    CIL is a charge on specified types of development to contribute to the infrastructure needed to support development and the sustainability of the development plan. The charge provides a greater level of certainty to developers and landowners regarding their contributions and is charged per net square metre of new development. Further information on the types of development liable for the levy are detailed in the sections below.

     

    The South Worcestershire Councils (SWCs), comprising of Malvern Hills District, Worcester City and Wychavon District Councils adopted individual Charging Schedules in 2017 . The decision to introduce CIL was taken by the SWCs to contribute towards the funding required to deliver the joint South Worcestershire Development Plan (SWDP).

    This Draft CIL Charging Schedule had been updated to reflect new viability evidence supporting the SWDP Review. The 2010 CIL regulations (as amended) require consultation on a Draft Charging Schedule prior to submitting it to the Secretary of State for examination. The Consultation is running between midday on the 12 February and midday on the 25 March 2024 and is expected to be implemented by the end of 2024. This is to allow the charging schedule to be consistent with, and support the implementation of, the SWDP Review, as set out In the National Planning Practice Guidance(NPPG) (Community Infrastructure Levy - GOV.UK (www.gov.uk) Paragraph: 011 Reference ID: 25-011-20190901).

    Although charging schedules are not formally part of the relevant plan, charging schedules and relevant plans should inform and be generally consistent with each other. Therefore, the NPPG states that ‘where practical, there are benefits to undertaking infrastructure planning for the purpose of plan making and setting the levy at the same time’ (Paragraph: 012 Reference ID: 25-012-20190901).

  • Introduction

    Each of the three councils in the SWCs are classed as charging authorities and therefore may charge CIL in respect of their own district. The adopted CIL rates have been in place since June (Wychavon and Malvern Hills) and September (Worcester) 2017 and there has been no demonstrable adverse impact on the supply of development land or the viability of development coming froward across the SWCs. Despite this, there have been changes to sales values and build costs since the Charging Schedule was adopted.

    Amendments to the Community Infrastructure Levy Regulations (2010) were introduced in September 2019, with the main significant changes including the removal of pooling restrictions for Section 106 (S106) obligations; removal of the requirement for a Regulation 123 list; and the introduction of the requirement to annually produce an Infrastructure Funding Statement which must include a list of infrastructure projects that CIL might be spent on.

    The SWCs submitted their joint South Worcestershire Development Plan Review to the Planning Inspectorate for independent Examination on 27 September 2023 with proposed adoption in December 2024. It is therefore timely for the SWCs to consult on amendments to its adopted CIL Charging Schedules in line with the infrastructure requirements of the emerging plan as well as the amendments to the CIL Regulations.

    Preparation of the Charging Schedule is supported by several evidence documents that have been submitted to the Planning Inspectorate for examination as part of the SWDPR Review. This includes the Infrastructure Delivery Plan (IDP) (September 2022) that sets out the infrastructure requirements to support the delivery of planned development. The IDP is a living document, and therefore will likely need to be updated. Alongside changes to the IDP, the market is variable and will also be monitored, leading to review of the Charging Schedule in the future.

    AspinallVerdi have produced a series of evidence reports on behalf of the SWCs which are of relevance and include:

    1. The SWDP Review and CIL Viability Assessment (July 2022) which evaluates the financial viability of the plan and reviews the CIL charging schedules. This was to ensure that the cumulative impact of the Local Plan policies is viable and provide evidence of whether CIL should be charged for residential housing and to what extent;

    2. The South Worcestershire Retail and Commercial CIL Viability Assessment (August 2022) provides evidence of whether CIL should be charged for certain types of retail and commercial uses and to what extent;

    3. The SWDP Review Strategic Site Viability Assessment (July 2022) provides evidence of whether CIL should be charged for strategic sites and to what extent; and

    4. The SWDP Review CIL Viability Assessment of Express Retail and Student Accommodation (October 2023) provides further evidence of whether CIL should be charged on brownfield student accommodation and small express retail development on both brownfield and greenfield land.

      All of the submission documents can be found on the SWDP Review / Examination website: SWDP Publication Regulation 19 Evidence Reports - South Worcestershire Development Plan (swdevelopmentplan.org)
  • CIL and S106 and S278 agreements

    Section 106 (S106) agreements and Section 278 Highways Agreements will continue to be used to secure mitigation, affordable housing, open space provision and education and health facilities following the CIL review. The amended CIL regulations no longer contain a pooling restriction to a maximum of five S106 obligations to fund a specific piece of infrastructure. Both CIL and S106 funding can be secured against the same development, however, there will be no instance where both CIL and S106 will contribute towards the same piece of infrastructure. All projects proposed to be wholly or partially financed via CIL will be assessed via an established method and set of criteria.

    Site specific planning obligations under S106 must satisfy three legal tests (in accordance with Regulation 122); they must be:

    1. Necessary to make the development acceptable in planning terms;
    2. Directly related to the development; and
    3. Fairly and reasonably related in scale and kind to the development.

      To ensure that developers are not being asked to fund the same infrastructure through both CIL and S106 agreements, certain types of infrastructure will only be sought either on site or through financial contributions via S106. A list of general types of infrastructure which is expected to be sought via S106 rather than CIL is shown below, and were viability tested on S106 assumptions:
    • Affordable Housing;
    • Education;
    • Green Infrastructure including Areas of Informal Recreation;
    • AONB Impact;
    • Health (Primary and Secondary);
    • Waste;
    • New Community Facilities;
    • Transport;
    • Police;
    • Flood and Water management; and
    • Site specific mitigation.
  • Viability and rate setting

    In order to establish levy rates across the SWCs, the councils commissioned Aspinall Verdi to carry out a review of viability across the districts, examining the cumulative impacts of the policies in the SWDP Review and CIL. This review and further work on Strategic Site viability and retail and commercial viability was undertaken to assess the effect that any revised CIL rates would have on development viability. The outputs from these assessments are detailed in the relevant documents set out in section 2.5 above.

    Full policy compliance is the default position when considering development viability and setting appropriate benchmark land values as set out in the NPPG (Viability) Paragraph: 012 Reference ID: 10-012-20180724. This includes the funding of infrastructure through CIL and Section 106 obligations, affordable housing and on-site policy requirements.

  • CIL Charging Map

    CIL charging maps

    The SWDP Review contains four strategic sites which will be charged £0 per m2. These are shown in Map 1 below. Future allocated sites of 1000 or more dwellings will also be charged £0 per m2. Strategic sites in the SWDP Review should be providing required infrastructure on site and further costs would make these developments unviable.

    Aspinall Verdi determined that there are two geographical areas within south Worcestershire for housing values, the northern part being a lower value area, and the southern part being a higher value area. Map 1 below shows the delineation of these two areas in south Worcestershire. Please note that these higher and lower value areas are for housing developments only.

  • CIL rates

    The CIL regulations allow for the setting of differential rates (including zero rates) for different geographical areas or for different land uses across our charging areas. The CIL regulations also provide for the ability to set differential rates in relation to scales of development.

    The CIL charges for residential development are shown below in Table 1 and are based on the recommendations from the CIL Viability Reports. Residential development will be charged based on whether the development is on greenfield or brownfield land, as well as on the geographical location of the development in terms of its location in a higher or lower value area(detailed in Section 6 below).

    Table 1 Proposed CIL Rates
    Type of development Current charge per square metre Proposed higher value Proposed lower value
    Housing Greenfield (9 or less units) (Including RDAs) £43.27 £150 £100
    Housing Greenfield (10 or more units or sites 0.5ha or more) (including RDAs) £43.27 £150 £100
    Housing Brownfield (9 or less units) (including RDAs) £0 £45 £0

    Housing Brownfield (10or more units or sites 0.5ha or more) (including RDAs)

    £0 £45 £0
    Higher density flatted development Brownfield £0 N/A £0
    Purpose Built Student Accommodation (PBSA) Greenfield £108.17 £110 £110
    Purpose Built Student Accommodation (PBSA) Brownfield £108.17 £110 £110
    Age restricted / sheltered housing Greenfield £0 £150 £100
    Age restricted / sheltered housing Brownfield £0 £45 £0
    Extra care / assisted living Greenfield £0 £150 £0
    Extra care / assisted living Brownfield £0 £45 £0
    Strategic sites (and allocated sites over 1,000 units) £0 £0 £0

    The viability work tested sites which were on greenfield and brownfield land, as well as sites in Designated Rural Areas (DRAs). This was to ensure there was sufficient evidence that the proposed CIL charges were robust for all residential developments across south Worcestershire.

    Further work was undertaken by Aspinall Verdi on Purpose-Built Student Accommodation in October 2023, which concluded that the existing rate of £110 should be retained. The viability evidence shows that these types of development may be unviable, however, although it is reporting as unviable developments have come forward at this set rate.

    Higher density flatted typologies in the lower value zone on brownfield land were tested and found to be unviable, therefore it is not appropriate to seek CIL on these types of sites. It is recommended that for higher density flatted schemes a viability appraisal is submitted to allow EUV and vacant building credit to be factored in before negotiations on S106 and affordable housing requirements take place.

    No other areas of higher density flatted typologies were tested as these are highly unlikely to come forward.

    All of the strategic sites were tested and shown to be viable (July 2022) based on a policy compliant 40% affordable housing whilst allowing for the relevant cost per unit total strategic infrastructure and S106 (excluding CIL – CIL exempt). Although there is headroom to charge CIL, it is important for delivery that the infrastructure is funded through the most appropriate mechanism. S106 agreements enable more flexibility (especially in two-tier authorities) for the delivery of infrastructure compared to CIL. This is particularly the case where there is uncertainty in respect of the strategic infrastructure costs due to the stage of design. It Is therefore proposed that the CIL charging Schedule excludes all allocated sites over 1,000 units which will ensure the Charging Schedule is ’future-proofed’.  

    The CIL charges for retail and commercial development are as follows and are based on the recommendations from the CIL Viability Reports: 

    Table 2 Proposed CIL rates for retail and commercial development
    Type of development  Current charge per square metre Proposed charge per square metre
    Large format / discount format convenience retail £60 £200
    Small (express) convenience retail £60 £60
    Office use £0 £0
    Industrial/logistics use £0 £0

    Large format / discount format convenience retail development is proposed to be charged up to £200 per square metre (psm). It was suggested that the increase in charge is phased, however, due to the Council’s having an instalment policy, as well as the proposed changes being consulted and examined, it is proposed that the increase from £60psm to £200psm charged will not be phased.

    The August 2022 South Worcestershire Retail and Commercial CIL Viability Assessment found that small (express) convenience retail formats were not viable when tested, this was believed to be due to the assumptions in respect of value which have a higher yield (6.5%). Aspinall Verdi recommended that the CIL rate of £60 psm should be retained and suggested further research and consultation be undertaken to review the value assumptions. Most new-build small convenience stores are developed by major supermarket chains and therefore a stronger yield is expected. The sensitivity tables show that a 20% increase in value, which only requires a small yield shift to 5.85%, would enable the existing CIL rate to be viable.

    Further work was undertaken by Aspinall Verdi on small express retail in October 2023, concluded that any CIL rate would be unviable. Despite this, the council will continue to charge CIL at £60 psm, as developments of this type have come forward and paid CIL. Small express retail has come forward at the existing CIL rate, meaning that although tested as unviable, this does not take into account whether they are independent, or are part of larger corporations.

  • Calculating the chargeable amount

    The council will calculate the amount of CIL chargeable to qualifying development utilising the formula set out in the 2010 CIL Regulations (as amended). In summary the amount of CIL chargeable will be calculated as follows:

    • CIL rate multiplied by chargeable floor area (metres squared) multiplied by RICS CIL index (lp).
    • Divided by RICS CIL index (lc).

    Lp is the index figure for the calendar year in which planning permission was granted.

    Lc is the index figure for the calendar year in which the charging schedule took effect.

    Further detail on calculating the amount due is contained in the 2010 CIL Regulations (as amended). The Community Infrastructure Levy Regulations 2010 (legislation.gov.uk)

  • CIL implementation and payments

    The Levy rate is expressed as a £ per metre square charge (gross internal area) within south Worcestershire. The levy will be applied to:

    • buildings into which people normally go;
    • new build floor space of at least 100 square metres;
    • the creation of a new dwelling (even if the floor space is less than 100 square metres); and
    • the conversion or change of used of a building that is no longer in lawful use. Development still needs to include 100 square metres or more new floorspace or the creation of a new dwelling. If a building is still in lawful use, CIL is only payable on the additional new floorspace after factoring in the existing floorspace that can be offset against the new floorspace (even if the total is under 100 square metres).

      The Levy may also apply to development permitted by a ‘general consent’ (including permitted development) commenced on or after 6 April 2013.

      Development will not be liable for CIL if it:
    • involves any change or use, conversion or subdivision of, or creation of mezzanine floors within a building which has been in lawful use for at least six months in the 3 years prior to the development being permitted and does not create any new build floorspace; or
    • is for a building into which people do not normally go, or only go intermittently for the purpose of inspecting or maintaining fixed plant or machinery; or
    • is for a structure which is not a building, such as pylons or wind turbines; or
    • is for a use which benefits from a zero or nil charge (£0 psm) as set out in a CIL Charging Schedule.

      Where buildings are demolished to make way for new buildings, the Levy charge will be based on the floorspace of new buildings less the floorspace of the demolished buildings (provided the buildings were in lawful use prior to demolition).

      The CIL regulations state that affordable housing and charitable development (developed by a registered charity for charitable purposes), as well as self-build residential properties, are non-chargeable, provided exemption is sought from CIL. Additional exemption / relief claim forms may be required by the Charging Authority. Affordable housing will continue to be secured via S106 agreements.
  • Spending CIL and reporting

    The 2010 CIL Regulations (as amended) require all local planning authorities that issue a CIL liability notice or enter S106 planning obligations during a reporting year to publish an Infrastructure Funding Statement (IFS) at least annually. The IFS should, as a minimum, include the information set out in Schedule 2 of the 2010 CIL Regulations (as amended). This includes reporting on the amount of CIL collected, allocated, unallocated and spent for the reported year, and the amount of CIL passed onto Parish Councils as well as the total amount of CIL collected, allocated and unallocated before the reported year. As part of the IFS a list of items of infrastructure is required to identify the quantum of CIL allocated or spent on each item.

    Each of the three local planning authorities in south Worcestershire publish an IFS individually, as required by the regulations by the close of each year. Although CIL is collected by each council individually, the total amount of CIL is pooled and each IFS details the amount collected for the three councils.

    For further information, the IFS for each council is available on their websites.

    Malvern Hills District Council - Community Infrastructure Levy - Malvern Hills District Council

    Worcester City Council - Developer Contributions - Worcester City Council

    Wychavon District Council - Community Infrastructure Levy - Wychavon District Council

  • Instalments policy

    The levy is non-negotiable and is payable to the relevant charging authority on commencement of development or, for large development, over an agreed phased period as set out in the instalments policy in Appendix A.

    Under section 70 of the 2010 CIL Regulations (as amended) payment by instalment is provided for where an instalments policy is in place, provided this is published on the charging authorities’ website. An instalment policy can assist the viability and delivery of development by taking account of financial restrictions, such as may be encountered in the development of homes within the buy-to-let sector. Few, if any, developments generate value until they are completed either in whole or in phases. The council may revise or withdraw the instalments policy if they consider this to be necessary.

  • Percentage to neighbourhoods / Neighbourhood Funds

    Where CIL exists, 15% or 25% of levy receipts will be passed onto parish or town councils, in a neighbourhood proportion, 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 Worcester City), the 15% of levy receipts will be held by the charging authority, who should 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. Table 3 below provides a summary of the differing levy receipt permutations.

    Whilst CIL receipts are generally required to be spent on infrastructure-specific items, the neighbourhood portion can be spent on a wider range of things than the rest of the levy, if it meets the requirement to ‘support the development of the area, or any part of that area’ (2010 CIL Regulations (as amended) section 59C).

    Table 3: Summary of CIL receipts
    Parish council Neighbourhood Plan Levy
    Yes yes 25% uncapped. Paid to parish council each year.
    Yes No 15% capped at £100/dwelling (indexed to inflation). Paid to parish council each year.
    No Yes 25% uncapped. Local authority consults with community about how funds can be used, including to support priorities set out in neighbourhood plans.
    No No 15% capped at £100/dwelling (indexed for inflation). Local authority consults with community to agree how best to spend the neighbourhood funding.
  • Sustainability

    Over the coming years, values and costs of development could change significantly and the market could become more certain or indeed more uncertain. It is difficult to predict how and when such changes may happen. It will therefore be important to monitor the market and review the Levy as appropriate.

  • Review

    The CIL charging schedule does not require a Sustainability Assessment as it is a financial document rather than a ‘land use planning’ document.  The planned development, including infrastructure to be funded through CIL are evidenced and tested as part of the SWDP Review.

  • Appendix A

    In accordance with Regulation 69B of the CIL Regulations 2010 (as amended) the charging authorities have produced a CIL Instalments Policy.

    This allows persons liable to pay CIL to do so by instalments provided they have complied with the relevant regulations. The time that the first instalment payment is due is calculated from the date the development is commenced. The existing Instalments Policy was introduced on 5 June 2017, and it is not proposed to amend this.

    CIL Liability less than £50,000: Cannot be paid in instalments. Total amount payable within 60 days of commencement of development.

    CIL Liability from £50,000 to £249,999:  Can be paid in two instalments, with each one being 50% of the total amount. The first instalment is payable within 60 days of commencement of development. The second instalment is payable within 6 months of commencement of development.

    CIL liability from from £250,000 to £1,000,000:  Can be paid in two 30% instalments and one 40% instalment. First instalment must be paid within 60 days of commencement of development. Second instalment must be paid within six months of commencement of development and third instalment must be paid within nine months of commencement of development.

    CIL liability for any amount greater than £1,000,000: Payable in four instalments of 25% each. First instalment payable within 60 days of commencement of development. Second instalment payable within six months of commencement of development. Third instalment payable within 9 months of commencement of development. Fourth instalment payable within 18 months of commencement of development. 

    In principle CIL can be paid in four instalments for any amount greater than £1,000,000. However instalments will be open to negotiation on an individual basis.

  • Supporting information

Read more …Community Infrastructure Charging Levy Consultation

Malvern Hills 2015 - by Jan Sedlacek
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Malvern Hills 2015 - by Jan Sedlacek