Community Infrastructure Levy (CIL) Due in April

Developers, house builders, local authorities and professional planners have all welcomed publication of the amended regulations for the Community Infrastructure Levy (CIL), the new development charge due to be introduced in April.

CIL is a new power allowing councils to raise funds from developers alongside new building projects. The funds are intended to help contribute to build necessary infrastructure such as new schools, hospitals, roads and transport schemes as well as libraries, parks and leisure centres. The aim of the new system is to give developers certainty over the contributions they will have to make to for planned projects. It is hoped that the regulations will ensure that developers pay a fair share towards new local services that are needed because of the development.

The regulations potentially allow councils to raise potentially an extra £700m a year. , CIL is intended to replace the existing planning obligation arrangements based upon the much criticised on s106 agreements that many believe have been little short of hidden taxation, rather than compensating local authorities. Developers have often found that at the end of difficult and protracted planning process significant sums of money have been demanded for such things as providing bus services or improvements to public buildings. It is hoped that CIL will, at the early proposal stages, provide certainty in relation to such costs and also speed up the planning process.

The increasingly complex, bureaucratic and costly planning process is now much criticised and is seen by many as holding back economic growth (see issue 3 “Will Planning delay your chances of recovery?”. In the 1960’s and 70’s successive governments used the construction industry to stimulate the economy because it was an expeditious means of getting the unemployed back to work and youngsters into training programmes that had a real prospect of continuing employment. The current lengthy planning processes no longer permit this to happen, with an average time of 58 weeks being taken for residential developments to be processed. This can, frustratingly, even happen with developments that will bring much needed benefits and are fully supported by local communities. All too often it appears subjective and nebulous reasons seem to be found for delaying or refusing a planning approval rather recognising positive benefits that may be gained in employment and turning barren dereliction into productive use.

for further information;
http://www.planningportal.gov.uk/england/professionals/news/archive/2010/feb2010/2010-02-week-2/110210_1