Community Infrastructure Levy seminar


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Blake Lapthorn solicitors' Planning team held a seminar on the Community Infrastructure Levy in March 2009.

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Community Infrastructure Levy seminar

  1. 1. Community Infrastructure Levy Friday 27 March 2009 Henry Gordon-Lennox, Blake Lapthorn
  2. 2. Community Infrastructure Levy © Blake Lapthorn 2009
  3. 3. Purpose of Community Infrastructure Levy (CIL) is to “support infrastructure delivery” “Is it a bird, is it a plane, no it’s a central line train!” © Blake Lapthorn 2009
  4. 4. “The CIL will establish a better way to increase investment in vital infrastructure that growing communities need” Current mechanism – s106 agreements contributions towards easing the pressure put on infrastructure by a development (eg schools, roads, open space) only 14% of developments contribute though First attempt to resolve – Planning Gain Supplement a tax aimed specifically at taking a proportion of uplift in land value attributable to the grant of planning permission Second attempt - CIL to capture more revenue from developments a development tax in all but name – Government deny © Blake Lapthorn 2009
  5. 5. Is it a tax – judge for yourself Baroness Andrews (promoter of the Planning Bill in the Lords) stated during the Bill’s second reading “The CIL is a generalised charge…unlike planning obligations under Section 106, CIL loosens the relationship between an individual development and the size of its contribution to fund infrastructure, because it is an averaged cost distributed evenly across a number of developments. The amount of CIL to be paid in a specific case will not be calculated on the basis of the specific need for infrastructure.” © Blake Lapthorn 2009
  6. 6. How will it be calculated? Unhelpfully this is left to secondary legislation and the local planning authority – so currently not fully clear but…. Each LPA will prepare a ‘charging schedule’ setting rates having regard to the actual or expected infrastructure cost potential effect on economic viability of development other actual or expected sources of funding for infrastructure Regulations may force the authority to adopt specified methods of calculation charging schedules may be subject to indexation © Blake Lapthorn 2009
  7. 7. Likely methods of calculating CIL Regulations permit several options by reference to; – “descriptions or purposes of development” – “to any measurement of the amount or nature of development’ eg: floor space to numbers or intended uses – of buildings – of units within buildings allocation of space within buildings or units values (or expected values) or in any other way” – “nature or existing use of the place development occurs” © Blake Lapthorn 2009
  8. 8. Procedure for adopting ‘charging schedule’ Draft of charging schedule must be approved by the Council – accompanied by a declaration approved at a Council meeting that complied with CIL Regs and have available evidence to support position Independent examiner must review draft and hear any representations from the public – either approve, reject or recommend modifications Council can only finally approve if Examiner approves or if they adopt his modifications must be approved by Council meeting by majority vote © Blake Lapthorn 2009
  9. 9. When will CIL apply? When planning permission is granted for; – the creation of a “new” building, or – anything done to or in respect of an “existing” building Government view a “building” as something that is occupied thereby contributing to infrastructure need – unoccupied developments most likely exempt eg railway lines, phone masts, wind turbines – charities – exempt if for charitable purpose – homeowner development / agricultural – exemption – viability? © Blake Lapthorn 2009
  10. 10. Trigger and responsibility for CIL payment Assessment date is date of grant of planning permission Payment not required until ‘commencement’ – but will be subject to indexation Responsibility initially on ‘developer’ – but owner liable if developer defaults Criminal offence not to pay – other enforcement mechanisms / sanctions too (see S.217) © Blake Lapthorn 2009
  11. 11. Paying the CIL! Payment will be to the ‘charging authority’ – will basically be County / District Councils May be able to pay in instalments – and possibly on account (!?) May be able to make payment in non-monetary forms – eg making land available, carrying out works or providing services © Blake Lapthorn 2009
  12. 12. What will it be used for? ‘Infrastructure’ – includes Roads Transport facilities Flood defences Schools Medical facilities Sporting and recreational facilities Open spaces Affordable Housing © Blake Lapthorn 2009
  13. 13. Areas of concern Overlap with s106 agreements – double recovery – particularly affordable housing When is a “building” “occupied” – potential for uncertainty Lack of consistency between and within authorities – not uniform but area specific – development pressures Option for nil rate – unlikely to be taken up by Councils given reduction in S106 revenue Viability? – sterilisation of land and land banking – CIL Regulations may permit charging authorities to have regard to economic viability when setting CIL rates © Blake Lapthorn 2009
  14. 14. When is CIL coming? Draft regulations – supposed to be Spring 2009 Regulations not to come into force pre October 2009 Once in force the draft charging schedules need to be prepared – Will take time given requirement to provide evidence of actual / expected infrastructure costs the need for which needs to be assessed Then subject to independent examination Likely to be in majority of Councils at earliest by end of 2010 but more likely in middle of 2011 © Blake Lapthorn 2009
  15. 15. If you have questions on this or other related topics, please contact: Blake Lapthorn is an English law firm regulated by the Solicitors Regulation Authority under SRA number 448793 whose rules can be accessed via This presentation is protected by copyright and is not a substitute for detailed advice on specific transactions and problems and should not be taken as providing legal advice on any of the topics discussed. A full list of our partners is available on our website at or at any one of our offices © Blake Lapthorn 2009