Important news relating to Community Infrastructure Levy
Following a public hearing held on 29 November 2016 the South Worcestershire Councils (SWC) received on 27 January 2017 the final report on the proposed Community Infrastructure Levy (CIL) Charging Schedules, from examiner Mr Roger Clews of The Planning Inspectorate. The report concluded that, subject to his recommended modifications, the CIL Charging Schedules for Malvern Hills District, Worcester City, and Wychavon District Council’s provided an appropriate basis for the collection of the CIL levy for each SWC.
The SWC are currently notifying interested parties on these modifications which the examiner believes are necessary to make the Charging Schedules ‘sound’ prior to their adoption by each SWC in June 2017.
Following the conclusion of this consultation, a final CIL Charging Schedule will be produced, incorporating the examiner’s modifications, the revised Regulation 123 List and all of the previous modifications to the Charging Schedule into a single document that will be considered for adoption by each of the SWC at their respective Council meetings in May 2017. Developers/applicants and agents should therefore be aware that the SWC are likely to implement CIL on 5 June 2017 and that CIL charges will apply for all qualifying development. It is important to note that CIL will apply to applications that are live at the point of adoption and those applications submitted after the adoption date. This means that all planning applications will need to be accompanied by a CIL form that will be available from each Council’s website.
Quick Link to the CIL Examination webpage.
Quick Link to the CIL Submission Documentation webpage.
What is the Community Infrastructure Levy?
The Community Infrastructure Levy (CIL) is a locally set charge (levy) that came in force on 6 April 2010 through the CIL regulations 2010 (as amended). The CIL is a charge that local authorities in England (known as “charging authorities”) can place on new development in their area. The money generated through the levy will contribute to the funding of infrastructure to support development growth in south Worcestershire.
The CIL is intended to supplement other funding streams to ensure that new community infrastructure can be provided to support local growth and to give councils and communities more choice and flexibility in how infrastructure is funded. Infrastructure proposed to be funded by the CIL is established through a Regulation 123 list. The primary purpose of the list is to ensure that there is no duplication between CIL and other infrastructure payments such as Section 106 agreements (planning obligations).
Pooling Restrictions on Planning Obligations
Councils have a choice of whether or not to implement a CIL. However, a key driver for change is that through CIL regulations, the existing system of Planning Obligations under Section 106 of the Town and Country Planning Act 1990 (as amended) is being scaled back. With effect from 6 April 2015, the CIL regulations restrict the use of Section 106 agreements by prohibiting the pooling of contributions from five or more sources for a specific infrastructure project or a type of infrastructure that is capable of being funded by the levy, dating back to 6 April 2010. Planning Obligations also need to pass three legal tests (known as CIL Regulation 122) in order to constitute a reason for granting planning permission. Section 278 agreements (for paying the costs of highways work) do not have restrictions on the number of contributions that can be pooled.
A portion of CIL levy receipts (15% or 25%) will be passed onto Parish or Town Councils, which will then have control over how it is spent. A 25% share is dependent on a neighbourhood plan being in place. In un-parished areas (applicable to some areas of Wychavon District and Worcester City), the 15% of the levy receipts will be held by the charging authority, who will then engage with the communities where development has taken place and agree with them how best to spend the neighbourhood funding. For areas with no neighbourhood plan, the 15% share is capped at £100 per existing council tax dwelling per year. For areas with an adopted neighbourhood plan, the 25% share of levy receipts is uncapped.
The South Worcestershire Infrastructure Delivery Plan (SWIDP) identifies the infrastructure needed to deliver the growth set out in the South Worcestershire Development Plan (SWDP). The levy will help to fund these requirements.
The CIL also needs to be informed by viability evidence. The south Worcestershire authorities need to be able to explain how their proposed levy rate (or rates) will contribute towards the implementation of the SWDP and support development across the area by striking an appropriate balance between the additional investment needed to support development and the potential effects on the viability of development.
In order to introduce a CIL, the south Worcestershire Councils are required to carry out two consultation stages prior to submission for examination. These are:
- Preliminary Draft Charging Schedule (PDCS); and
- Draft Charging Schedule (DCS)
The south Worcestershire Councils have progressed through the PDCS and DCS stages and will be submitting the CIL for joint examination from 26 July 2016. A statement of modifications consultation will precede submission and will run for four weeks from 9:00am on Monday 25 July to 5:00pm on Monday 22 August 2016. Due to teething problems with the SWDP website, the consultation period has been extended to 5:00pm on Friday 26 August 2016.
Follow this link to be directed to the CIL Submission Documentation webpage.
The current production timetable, as set out in the latest Local Development Schemes (LDS) published in October 2015, is set out below. The timetable is subject to revision via an updated LDS, anticipated for autumn 2016. The revised dates below are therefore subject to approval of the updated LDS, and progress made with the Independent Examination.
- Publication of Draft Charging Schedule (Regulation 16) – March 2016
- Submission (Regulation 19) – July 2016
- Independent Examination – August 2016 (now November 2016 – the examination hearing sessions will be held on 29th and 30th November 2016 at the Guildhall in Worcester)
- Receipt of Examiners Report (Regulation 23) – November 2016 (anticipated January 2017)
- Adoption (Regulation 25) – December 2016 (anticipated February 2017)
- Levy Takes Effect (Regulation 28) – January 2017 (anticipated April 2017)
Details of the completed CIL stages to date are set out below.
CIL Draft Charging Schedule (2016)
- Community Infrastructure Levy – Draft Charging Schedule (April 2016)
- Community Infrastructure Levy – Updated Justifying the Levy Background Document (April 2016)
Consultation Responses (CIL DCS 2016)
Consultation on the Community Infrastructure Levy Draft Charging Schedule ran from 1 April 2016 to 16 May 2016.
Revised CIL Preliminary Draft Charging Schedule (2015)
- Community Infrastructure Levy – Revised Preliminary Draft Charging Schedule (February 2015)
- Community Infrastructure Levy – Revised Justifying the Levy Background Document (February 2015)
Consultation Responses (Revised CIL PDCS 2015)
Consultation on the Community Infrastructure Levy Revised Preliminary Draft Charging Schedule ran from 16 February 2015 to 30 March 2015.
CIL Preliminary Draft Charging Schedule (2013)
- Community Infrastructure Levy – Preliminary Draft Charging Schedule (September 2013)
- Community Infrastructure Levy – Justifying the Levy Background Document (September 2013)
Consultation Responses (CIL PDCS 2013)
Consultation on the Community Infrastructure Levy Preliminary Draft Charging Schedule ran from 27 September 2013 to 8 November 2013.