Introduction to the Community Infrastructure Levy

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Presentation to planning professionals January 2010 of the new provisions concerning the Community Infrastructure Regulations 2010 and general provisions

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  • Introduction to the Community Infrastructure Levy

    1. 1. Community Infrastructure Levy: an introduction Graham Gover Solicitor
    2. 2. Source material
    3. 3. Source material
    4. 4. Source material
    5. 5. Source material
    6. 6. Source material
    7. 7. Material still to comeLocalism Act • see Part 5 Chapter 2 of the BillMore RegulationsDevelopment Management PPS • Annex to replace Circular 5/05
    8. 8. Material still to comeLocalism Act • see Part 5 Chapter 2 of the BillMore RegulationsNational Planning Policy Framework
    9. 9. Why is it needed?
    10. 10. Why is it needed?Problems with s106 obligations:
    11. 11. Why is it needed?Problems with s106 obligations: • do not provide for incremental effects of development
    12. 12. Why is it needed?Problems with s106 obligations: • do not provide for incremental effects of development • major developments bear costs disproportionately
    13. 13. Why is it needed?Problems with s106 obligations: • do not provide for incremental effects of development • major developments bear costs disproportionately • only 6% of planning permissions make any financial contribution
    14. 14. Why is it needed?
    15. 15. Why is it needed? • inconsistency between LPAs
    16. 16. Why is it needed? • inconsistency between LPAs • can lead to the notion that permissions are bought and sold
    17. 17. Why is it needed? • inconsistency between LPAs • can lead to the notion that permissions are bought and sold • s106s are often negotiated, leading to delay and legal costs
    18. 18. Why is it needed? • inconsistency between LPAs • can lead to the notion that permissions are bought and sold • s106s are often negotiated, leading to delay and legal costs • lack of accountability of how the money is spent
    19. 19. What is infrastructure?Includes: • roads and other transport facilities • flood defences • schools and other educational facilities • sporting and recreational facilities • open spaces • affordable housing
    20. 20. What is infrastructure?Includes: • roads and other transport facilities • flood defences • schools and other educational facilities • sporting and recreational facilities • open spaces • affordable housing
    21. 21. What is infrastructure?Includes: • roads and other transport facilities • flood defences • schools and other educational facilities • sporting and recreational facilities • open spaces
    22. 22. What is CIL liable development?
    23. 23. What is CIL liable development?Generally: buildings permitted throughsome form of planning permission,except
    24. 24. What is CIL liable development?Generally: buildings permitted throughsome form of planning permission,except • a building into which people do not normally go
    25. 25. What is CIL liable development?Generally: buildings permitted throughsome form of planning permission,except • a building into which people do not normally go • or go intermittently, for inspecting or maintaining fixed plant or machinery
    26. 26. Setting the charge 1
    27. 27. Setting the charge 1 • Produce a charging schedule: a new DPD within the LDF
    28. 28. Setting the charge 1 • Produce a charging schedule: a new DPD within the LDF • Based on the infrastructure planning evidence drawn for development strategy
    29. 29. Setting the charge 1 • Produce a charging schedule: a new DPD within the LDF • Based on the infrastructure planning evidence drawn for development strategy • Strike a balance between raising funds and effect on economic viability
    30. 30. Setting the charge 2
    31. 31. Setting the charge 2 • Identify other sources of funding
    32. 32. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types
    33. 33. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types • The shortfall = rate of CIL
    34. 34. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types • The shortfall = rate of CIL • Can apply differential rates to
    35. 35. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types • The shortfall = rate of CIL • Can apply differential rates to - different zones
    36. 36. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types • The shortfall = rate of CIL • Can apply differential rates to - different zones - intended use of development
    37. 37. Setting the charge 3
    38. 38. Setting the charge 3 Public consultation and examination
    39. 39. Setting the charge 3 Public consultation and examination • Consultation with communities
    40. 40. Setting the charge 3 Public consultation and examination • Consultation with communities • Publish for four + weeks prior to...
    41. 41. Setting the charge 3 Public consultation and examination • Consultation with communities • Publish for four + weeks prior to... • Examination in public
    42. 42. The chargeable amount R x A x Ip Ic
    43. 43. The chargeable amount R x A x Ip Ic Where:
    44. 44. The chargeable amount R x A x Ip Ic Where: A = the deemed net area chargeable at rate R
    45. 45. The chargeable amount R x A x Ip Ic Where: A = the deemed net area chargeable at rate R Ip = the index figure for the year in which PP was granted
    46. 46. The chargeable amount R x A x Ip Ic Where: A = the deemed net area chargeable at rate R Ip = the index figure for the year in which PP was granted Ic = the index figure for the year in which rate R took effect
    47. 47. The chargeable amount Cr x (C - E) C
    48. 48. The chargeable amount Cr x (C - E) C To find the value of A:
    49. 49. The chargeable amount Cr x (C - E) C To find the value of A: Cr = the gross internal area of the part of the development chargeable at rate R
    50. 50. The chargeable amount Cr x (C - E) C To find the value of A: Cr = the gross internal area of the part of the development chargeable at rate R C = the gross internal area of the chargeable development
    51. 51. The chargeable amount Cr x (C - E) C To find the value of A: Cr = the gross internal area of the part of the development chargeable at rate R C = the gross internal area of the chargeable development E = an amount equal to the gross internal areas of all builZZZZZZZZZZZZZZZ Z Z ZZZZ ZZ
    52. 52. Or, in plain English...
    53. 53. Or, in plain English... 2The levy is charged £/m of the netadditional increase in floorspace.
    54. 54. Or, in plain English... 2The levy is charged £/m of the netadditional increase in floorspace.Deduct the floorspace of any building tobe demolished
    55. 55. Or, in plain English... 2The levy is charged £/m of the netadditional increase in floorspace.Deduct the floorspace of any building tobe demolishedAdjustments made for changes in theIndex between date of permission and thecharging schedule taking effect
    56. 56. Various exemptions
    57. 57. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling
    58. 58. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities
    59. 59. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing
    60. 60. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing • “exceptional circumstances” only if
    61. 61. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing • “exceptional circumstances” only if - s106 exists
    62. 62. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing • “exceptional circumstances” only if - s106 exists - it must be more expensive than levy
    63. 63. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing • “exceptional circumstances” only if - s106 exists - it must be more expensive than levy - adverse effect on viability
    64. 64. Property as developed under GPDO Outbuilding (Class E) Rear Dormer (Class B) Rear Extension (Class A) Flue (Class G)
    65. 65. Administration
    66. 66. Administration • prior to commencement of development of PD, LDO etc, serve notice of chargeable development
    67. 67. Administration • prior to commencement of development of PD, LDO etc, serve notice of chargeable development • the collecting authority serves a liability notice + local land charge
    68. 68. Administration • prior to commencement of development of PD, LDO etc, serve notice of chargeable development • the collecting authority serves a liability notice + local land charge • service of a commencement notice
    69. 69. Administration • prior to commencement of development of PD, LDO etc, serve notice of chargeable development • the collecting authority serves a liability notice + local land charge • service of a commencement notice • collecting authority serves a demand notice
    70. 70. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
    71. 71. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
    72. 72. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
    73. 73. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
    74. 74. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
    75. 75. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days Land payment for payment in kind
    76. 76. Who is liable to pay?
    77. 77. Who is liable to pay? • by default, the owner of the land since that person generally benefits from increased land values
    78. 78. Who is liable to pay? • by default, the owner of the land since that person generally benefits from increased land values • ‘material interest’: freeholder or leaseholder with at least seven years to run
    79. 79. Who is liable to pay? • by default, the owner of the land since that person generally benefits from increased land values • ‘material interest’: freeholder or leaseholder with at least seven years to run • another person can volunteer liability
    80. 80. What if they don’t pay?
    81. 81. What if they don’t pay? • surcharge for failing to assume liability or serve notice, late payment
    82. 82. What if they don’t pay? • surcharge for failing to assume liability or serve notice, late payment • late payment interest
    83. 83. What if they don’t pay? • surcharge for failing to assume liability or serve notice, late payment • late payment interest • CIL stop notice, enforceable by unlimited fine and/or injunction
    84. 84. What if they don’t pay? • surcharge for failing to assume liability or serve notice, late payment • late payment interest • CIL stop notice, enforceable by unlimited fine and/or injunction • recovery by liability in the magistrates’ court: distress warrant, commitment to prison
    85. 85. Applying the CIL collected
    86. 86. Applying the CIL collected “A charging authority must apply CIL to funding to support the development of its area” Reg 59
    87. 87. Applying the CIL collected “A charging authority must apply CIL to funding to support the development of its area” Reg 59 • may apply it outside its area
    88. 88. Applying the CIL collected “A charging authority must apply CIL to funding to support the development of its area” Reg 59 • may apply it outside its area • may pass to another person for that person to apply to funding infrastructure
    89. 89. Applying the CIL collected “A charging authority must apply CIL to funding to support the development of its area” Reg 59 • may apply it outside its area • may pass to another person for that person to apply to funding infrastructure • localism!
    90. 90. Reporting
    91. 91. Reporting Annual reports
    92. 92. Reporting Annual reports • receipts
    93. 93. Reporting Annual reports • receipts • expenditure
    94. 94. Reporting Annual reports • receipts • expenditure • land payments
    95. 95. Reporting Annual reports • receipts • expenditure • land payments st Must appear on their website by 31 December following the report
    96. 96. The decision matrix for s106’s 1. Is any part of NO NO CHANGE the development Circular 5/05 applies capable of being until new policy YES The s106 must meet the new statutory test in YES
    97. 97. Policy test para B5 Circular 5/05
    98. 98. Policy test para B5 Circular 5/05 A planning obligation must be: (i) relevant to planning; (ii) necessary to make the proposed development acceptable in planning terms; (iii) directly related to the proposed development; (iv) fairly and reasonably related in scale and kind to the proposed development; and (v) reasonable in all other respects.
    99. 99. Statutory test Regulation122 A planning obligation may only constitute a reason for granting planning permission if it is: (i) relevant to planning; (ii) necessary to make the proposed development acceptable in planning terms; (iii) directly related to the proposed development; (iv) fairly and reasonably related in scale and kind to the proposed development; and (v) reasonable in all other respects.
    100. 100. The decision matrix for s106’s The s106 must meet the new statutory NO 2. Is CIL operating NO Will the in the LPA now? determination be made after 6 April YES YES
    101. 101. The decision matrix for s106’s The s106 mustNO 3. Is the proposed meet the new s106 contribution for statutory test in infrastructure capable YES YES. The s106 can deliver the proposed infrastructure
    102. 102. The decision matrix for s106’s NO 4. Has the LPA set out CIL infrastructure list on its website? YES NO. The s106 cannot deliver the proposed infrastructure
    103. 103. The decision matrix for s106’s5. Is the obligation 6.(After 06.04.14)duplicated by the NO Have five contributionsLPA’s CIL already been sought forinfrastructure list? the infrastructure via YES YES NONO. The s106 YES. The s106 cancannot deliver the deliver the proposedproposed infrastructureinfrastructure contribution
    104. 104. If all that is too much, remember... 1. All planning obligations from now on must pass the Regulation 122 test 2. LPAs cannot double-charge for CIL-funded infrastructure using planning obligations 3. LPAs are limited to seeking five contributions per item of CIL-funded infrastructure for items not appearing on their website 4. No limit for non-CIL funded infrastructure items
    105. 105. Are you excited about theprospect of being a planningpractitioner under the CoalitionGovernment?
    106. 106. Are you excited about theprospect of being a planningpractitioner under the CoalitionGovernment? Q &A

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