PAS Viability presentation 24.25 March 2015 - Savills

1. savills.com
CIL Latest Research & Findings
Lizzie Cullum, UK Development

2. Intro
Overview- CIL PAS Event
National Overview
North Focus
April 2015 & S. 106 Pooling Restriction
Q & A

3. The Savills Team

4. CIL Progress
National Overview

5. CIL Across England & Wales (All Stages)
Savills - http://www.savills.co.uk/promotions/cil-map.aspx

6. Source: Savills (as at 23rd March 2015)
Progress on CIL Implementation (England & Wales)
57
62
29
49
49
44
37
25
0 10 20 30 40 50 60 70
Implemented
Submitted for examination/examination closed
Draft Consultation
Preliminary Draft Consultation
Preparing evidence/Charging Schedule
Committed but not started
Not yet committed
Not pursuing
16%40%26%18%
DoneInprocessEngagedNotengaged
Number of Local Authorities

7. North of England

8. Northern England - CIL Progress Map

9. 5
North England - CIL Progress In Numbers
Implemented
3 Submitted for Examination
1 Draft Consultation
5 Preliminary Draft Charging Schedule
9 Preparing Evidence
28 Not Started
Correct as of 23rd March 2015
55% of Local Authorities
engaged with CIL in the
North of England
Only 8 Northern LPAs
Authorities anticipated
to have implemented
CIL by the end of 2015

10. April 2015 – Pooling Restriction

11. savills.com
Why is it an issue?
April 6th 2015
Regulation 123 introduces a Section
106 pooling restriction for ALL local
planning authorities post-6th April 2015
Deadline will NOT be extended –
Government Response to CLG Select
Committee Report (NPPF Operation)
“Local Planning authorities have
therefore had considerable notice of the
pooling restriction and the opportunity to
consider its potential effects locally”
NB: Bank holiday means 2nd April is
effectively the date that planning
decision notices need to be issued by

12. 0
50
100
150
200
250
300
350
400
0
20
40
60
80
100
120
CumulativeTotalofChargingAuthorities
NumberofChargingAuthorities
Date of Implementation
By the end of 2015, only
38% of LPAs will have
a CIL in place
Projections on number of implemented CILs
Source: Savills (February 2015)
Only 24% of LPAs
anticipated to have a CIL in
place by the end of April

13. How to advise on this ?
YES NO
CIL Charging Schedule in place
BEFORE 6 April 2015?
‘Regulation 123 List’ outlines what
types or projects Section 106 is
restricted. This is not a commitment
to spend CIL but will help to define
types and projects. (Reg. 123 (2))
Plus – need to be confident that the
limit on the number of planning
obligations has not yet been
reached. (Reg. 123 (3))
In both cases. Regulation 122(2) tests will need to be satisfied for the planning
obligation to be lawful
24% of
LPAs 76% of
LPAs
No Reg. 123 List. Most if not all
infrastructure obligations restricted ?
The test is the need to be confident
that the limit on the number of
planning obligations has not yet
been reached. (Reg. 123 (3))

14. So what does this mean in practice?
Section 106 lives on, but is restricted...
24% of LPAs
 CIL implemented
 Greater scope to define infrastructure priorities (Reg. 123 List)
 Potential for salami-slicing (NB: matter of FACT and DEGREE)
VS

15. So what does this mean in practice?
Section 106 lives on, but is restricted...
76% of LPAs
 No CIL in place
 Only Reg. 123 (3) applicable
 Section 106 obligations effectively limited to affordable housing and non-infrastructure
items
NB: Definition of infrastructure as per 2008 Planning Act, including “Roads & Other
Transport Facilities, Flood Defences, Schools & Other Educational Facilities, Medical
Facilities, Sporting and Recreational Facilities and Open Spaces”

16. Implications?

17. savills.com
Savills Regulation
122/123 Paper
• Commissioned by the Home Builders
Federation (HBF)
• Prepared jointly with Charles Russell
Speechlys
• Focused on highlighting issues facing
the development industry post-5th April
2015 and offering guidance for LPAs

18. The Disclosure Schedule
INCLUDE
All obligations entered into on or after 6th April 2010
 Agreements entered in to with the County Council (two tier
authorities)
Obligations included in unilateral or multilateral
agreements
 Revoked permissions, unimplemented permissions, extant
permissions
EXCLUDE
Section 278 agreements

19. Practical interpretation
of Regulation 122 &
123

20. Advice to clients...
 Be aware of unreasonable salami slicing
 Pooling restrictions apply District-wide not
Parish or Ward-wide
 Planning obligations can fall outside pooling
restrictions if not a reason for granting
planning permission
 Reasonable wording required on planning
conditions
 Key test is whether the scheme is “acceptable
in planning terms”
 Not having a CIL in place and the 2010 CIL
Regulations should be a material
consideration

21. savills.com
Visit www.savills.co.uk/cil