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Sheffield CIL - Richard Holmes
1. Implementing a CIL in Sheffield
- Lessons Learned
Richard Holmes,
Principal Planning Officer
Forward and Area Planning
Sheffield City Council
2. Timescale (1)
• Core Strategy adopted March 2009
• September 2011 – Cabinet decision to implement
CIL
• Detailed work on CIL priorities – related to Core
Strategy – ‘Phase 1’ IDP and ‘Draft Interim’ 123 List
• Initial ‘in-house’ work on viability
• May 2012 – Quotes for a Viability Study
• July 2012 – Stakeholder Workshop on viability
• December 2012 – Viability Study completed
3. Timescale (2)
• January 2013 - Consultation on a Preliminary Draft
Charging Schedule
• February 2014 – Revised Viability Study
• March 2014 - Consultation on Draft Charging
Schedule
• August 2014 - Consultation on Revised Draft
Charging Schedule
4. Timescale (3)
• October 2014 – Submission to CLG
• January 2015 – Examination
• February 2015 – Examiner’s Report received
• April 2015 – Cabinet Approval
• June 2015 – Full Council
• July 2015 – Began Charging
• December 2015 – Adopted SPD
5. Major Decisions Needed
• CIL Priorities / Regulation 123 List
• What level of ‘Buffer’
• Instalments?
• Exceptional Circumstances Relief?
• Other Discretionary Relief / PIK?
• Amend Affordable Housing policy?
6. Evidence
• Viability Study / Evidence
• (Draft Interim) Regulation 123 List
• Statement of Representations Procedure
and Inspection Statement
• CIL and S.106 / S.278 Statement
• Report of Consultations
• Background Report
• IDP / INA
8. Examination – Lessons Learned
• Early contact with PINS
• Get a good PO
• Research the Examiner!
• Book rooms as soon as the date is agreed
• Make sure viability consultants are
available before, during and after
9. Preparation for Implementation
• Systems / software
• DM Procedures – CIL Advice Notes
• Publicity – CIL is good news!
• Full Council decision needed and allow for
JR period
10. Post Adoption
Immediate Jobs:
•CIL and Planning Obligations SPD
•Implementation Group
Later:
•Neighbourhood Portion - parishes and non-
parished
•Regulation 123 List – corporate group
11. Lessons Learned Summary (1)
• Allow lots of time
• Make sure you have the budget available
• Study the Regs – objectors will try and
catch you out!
• EVIDENCE!
• Learn from others, but
• Be wary of other Inspectors Reports
12. Costs Incurred
Ignoring officer time, allow for:
•Viability Studies and updates
•Study visits and seminars
•Advertisements
•Examination:
– Witness support
– Examiner
– Programme Officer
•Software and systems
•Dedicated staff?
13. Lessons Learned Summary (2)
• Need detailed understanding of viability
• Resources – at least 0.5 FTE preferably
more
• Keep senior managers and Members well
informed; train officers
• Give out a positive message
• Celebrate!
14. CIL is Good News - Why?
• Generates significantly more funding than Section 106;
• Set at a level that ensures it is affordable / viable.
• Fairer, faster and more transparent than Section 106;
• Gives the Council and local communities more freedom to set
infrastructure priorities that are justified;
• Predictable funding stream making infrastructure delivery more
efficient;
• Gives developers certainty and quicker planning decisions;
• Rewards communities for new development through the
Neighbourhood Portion;
• Supported and promoted by Government.
• Focus on strategic infrastructure priorities for the city;
• Focus on delivering new homes and businesses in the priority
locations set out in the local plan.
15. Section 106 Contributions and
CIL Comparison
Section 106 - Last 5 Years Draft CIL Priorities 2017 to 2025
Open Space / Public Realm
£2,830,092 67.6% £7,500,000 26.1%
Highways
£603,058 14.4% £12,400,000 43.1%
Education
£326,024 7.8% £8,870,000 30.8%
Public Art
£320,035 7.6%
Warden Schemes
£44,600 1.0%
Signage
£27,500 0.6%
Other
£34,000 0.8%
TOTAL £4,185,309
100.0%
£28,770,000
100.0%
Actual Section 106 receipts and potential CIL Priorities (excludes affordable housing)
17. Implementation – Development
Management
• Produce Guidance Notes:
• 1- The CIL Process
• 2- Is My Development CIL Liable?
• 3- Payment by Instalment Policy
• 4- The Appeal Process
• 5- Penalties and Surcharges
• 6- Social Housing Relief
• 7- Charitable Development Relief
• 8- Self Build Dwellings Relief
• 9- Residential Annex and Extension Relief
• 10- Exceptional Circumstances Relief
18. Implementation – DM
• CIL collection wholly integrated within
Development Management
• Early engagement with developers / agents –
training session
• Prompting early submission of required
information e.g. Additional Information forms a
local validation requirement
• House extensions – no CIL Form required
• CIL Calculator
• Use Examples:
21. Other Examples and Further Advice
• Demolition deduction
• Retained floorspace and Change of Use
• Social Housing
• PD can be CIL Liable e.g. Office to Resi
• Explain Section 106 implications
• Explain various steps and CIL Forms
• Claiming Relief inc. ECR – Have to
assume liability
• Don’t forget Commencement Notice!
22. CIL Spending Priorities
• ‘Draft Interim’ Regulation 123 List -background
evidence for Charging Schedule – then adopted
by Cabinet
• Based on scoring exercise against Core
Strategy policies
• Revised, updated Regulation 123 List needed –
Also to be approved by Cabinet
• Corporate officer group set up, requested by
Cabinet Member
• Role of new local plan?
Claire is also here from the DM Admin team – more for implementation
But thinking about it in 2010
Takes time!
Working on the local plan
Uncertainty of Government ‘s approach – (just as now with current CIL Consultation and Review!!)
We initially looked at doing Viability Study ourselves – initial work confirmed charging appeared feasible.
but decided we didn’t have enough detailed expertise
Worth having a Stakeholder workshop and having consultants attend – useful to show engagement when defending charges at Examination. Use Agent’s Forum, Chamber of Commerce
Preliminary Draft Charging Schedule – do it sooner rather than later as it can easily be changed
Gap Jan 13 to 14 – focus on local plan. New Housing Market Areas from new SHMA and responses to consultation needed revised viability study – second viability workshop (took months to arrange – led by objectors), Change to Government CIL Guidance – more evidence needed (draft IDP and draft Reg 123 List, S.106), pooling restriction date to be moved; need for new affordable housing and Education IPGs
Cabinet approval process takes 4 months, unless delayed.
Revised Draft Charging Schedule was minor so didn’t need Cabinet (removal of Moor and NRQ strategic sites, reduction of leisure rate from £30 to £10)
Examiner appointed November
No Full Council in May
6 weeks potential JR
6 months from Exam to charging a minimum – also need implementation preparation
So 4 years start to finish but could be quicker?
Not much – 4 Cabinet decisions (avoiding elections although not subject to PERP), at least 2 consultations, commissioning consultants, procuring software and putting procedures in place. Minimum 2 years?
SPD ideally would have been earlier but no real complaints – concept and operation of CIL and S.106 becoming more understood
Affordable housing policy needs to be clear and accounted for. We had to amend ours, partly because of CIL
Advantage of having ‘independent’ consultants. Helped a lot with objectors, eg Deloitte. Local knowledge beneficial, but BNP considered ‘market leaders’ No regrets but make sure they’re available to answer objections and appear at Examination
Relate to local plan
Officer Working Group for Reg 123 and IDP
A lot of evidence – even more presented at Examination
Contact PINS well in advance of submission so they can plan – first contact Oct 13. We took an early slot when offered so not much notice & first week of Jan
PO – started looking into April 14
But our examiner was a new one
Started looking at software 2 years prior to procuring. But Exacom by far the best - incorporated IDOX
Produce Advice Notes
Start drafting SPD early if possible
Only really need DM but keep Legal, Finance and Land Charges in the loop
Easy if parished. Difficult if not – LAPs
The ‘Bun Fight’. Member priorities may not be the same as senior management… Difficult…. Methodology for prioritisation – but in the end priorities should reflect the LP
Elections and cancelled meetings delay Cabinet decisions
We used our local plan budget – helped by delays to our submission and Inquiry, then New Homes Bonus. Tricky & threatened delays
Question of an up-to-date plan never raised, so don’t let that hold you up
Different Inspectors say different things
Viability Study evidence only was accepted – other work not
Note costs and give rough figures
Very useful to speak to peers, esp. if they have more experience
Adverts – legal requirement
Examiner £1,000 per day inc. preparation and writing up. Our Exam 2 days. Won’t quote in advance!
Software – full suite inc. S.106, training days
What are the benefits of CIL?
Not aware of anyone regretting implementing CIL
Expecting greater income from CIL compared to 106
Note the change in priorities – reflects Core Strategy
But a lag time between limiting 106 and receiving CIL.
Allows for 123 and NP work
Start high(ish) and work down…
Issue with the ‘major retail’ definition - explain
Mentioned Advice notes – we have 10
House extensions. CIL liable but given 100 sq.m. limit and self-build relief we don’t require the CIL form – assume no charge and simplifies the process and saves time
CIL Calculator – on the website well in advance
C/U and PD – 6 months in 3 years. Not obvious – buried in Reg 40 calculation – existing building and demolition credit. We check this with Business Rates
What 106 won’t now be requested
Steps and Forms – Useful summary at the end of the CIL NPPG
Eg CIL Information form, Draft Liability Notice, Assumption of Liability, Liability Notice, Commencement Notice, Demand Notice
Don’t forget Commencement Notice! – lose instalments and relief and liable to surcharges. Payment has to clear
The ‘Bun Fight’. Member priorities may not be the same as senior management… Difficult…. What methodology for prioritisation – but in the end priorities should reflect the LOCAL PLAN
Consulting now on Citywide Options