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  6. Government consults on implementation of changed rules for levy

Government consults on implementation of changed rules for levy

Detailed implementation of the revised proposals for the Community Infrastructure Levy is now the subject of a consultation exercise by the Department for Communities and Local Government (DCLG).

The existing regulations for CIL came into effect in April 2010.These allow a charging authority to levy a charge on the owners or developers of land that is developed so that they contribute to the costs of providing the infrastructure needed to support the development of the area. Local authorities in England and Wales are able to implement a levy in their area if they choose to do so.

Subsequently, the Government set out proposals to reform the levy in the Localism Bill, currently still under consideration in the Lords.

These changes would require local authorities to pass a meaningful proportion of receipts to the neighbourhoods where the development that gave rise to them took place; clarifies that receipts may be spent on the ongoing costs of providing infrastructure to support the development of the area; and provides more local choice over how to implement a charge.

As well as covering measures included in the Localism Bill the consultation honours the administration’s commitment to consider and consult on whether to allow CIL receipts to be used to provide affordable housing during Parliament’s consideration of the changes.

The Planning Act 2008 already allows for this, but the current levy regulations prevent receipts being used for this purpose. Consultees have been invited to provide their views on allowing spend on affordable housing.

Specifically the consultation seeks views on:

  • implementing neighbourhood funds
  • allowing receipts to be used to provide affordable housing
  • providing transitional provisions to allow fair operation of the levy in Mayoral Development Corporation areas
  • requiring charging authorities to report more openly and regularly on receipts and expenditure to improve transparency and understanding of the contribution that developers are making and how those funds are used
  • adding new Development Orders to the list of developments that may be liable to a charge.

DCLG has also published draft regulations alongside the consultation document. The department said: “Consultees may wish, but do not need to, consider the regulations alongside this document. The consultation explains the effect of the draft regulations and the key questions where consultees’ views will particularly help to shape the policy as it is finalized.”

Access the consultation.

 

Roger Milne

13 October 2011