Details about the Community Infrastructure Levy

More information about the Community Infrastructure Levy.

About the Community Infrastructure Levy

The Community Infrastructure Levy is a locally-set charge (charged in pounds per square metre), which could be applied to new development to help fund infrastructure.

The Government has introduced it, as it considers it to be a fairer, faster and more transparent system than the current system of planning obligations, which are often negotiated on a case-by-case basis, with smaller developments often making little or no contribution.

Why development should pay for infrastructure

Almost all new development has some impact on the need for infrastructure, services and amenities, so it is only fair that such development pays a share of the cost where it is viable to do so.

Why we need to introduce the Community Infrastructure Levy

We currently collect contributions towards infrastructure from section 106 (s106) agreements associated with new development.

Alongside the introduction of the Community Infrastructure Levy, the Government has introduced changes to the way in which we can use s106 agreements. These limit our ability to collect contributions and 'pool' them to provide specific infrastructure projects or types. These changes came into effect in April 2015.

We therefore need to consider introducing the levy to make sure we can still collect financial contributions towards key infrastructure needed to support new development in Rushmoor.

How we will introduce the Community Infrastructure Levy

We can only introduce the levy once we have prepared and adopted a Community Infrastructure Levy charging schedule. This must go through a process of consultation and independent examination before we can adopt it. Our timetable for key stages is set out below:

Consultation on the preliminary draft charging schedule22 October - 30 November 2012
Consultation on the draft charging scheduleUnder review
Independent examinationUnder review
AdoptionUnder review
ImplementationUnder review

How we currently use s106 contributions

Following the restrictions on pooling s106 contributions, we are only able to use s106 contributions to provide site-specific infrastructure; for contributions that are not infrastructure, such as those we currently collect towards the management of the Thames Basin Heaths Special Protection Area; and to deliver affordable housing.

If we were to adopt a levy, we would have to publish a list setting out what we intend to fund from the levy receipts. To avoid double charging developers, we cannot then seek money through s106 for anything on the levy spending list. We can amend the spending list as and when we consider it appropriate to do so.

Who collects the levy and what it will be spent on

As well as being the charging authority, and therefore responsible for setting the levy rates, we are also the collecting and spending authority.

We will normally collect the levy at the start of a development, although there may be phased payments for larger developments.

We can spend the levy on infrastructure to support new development.

In Rushmoor, we will need to give priority to providing open space required for mitigating the impact of new development on the Thames Basin Heaths Special Protection Area. This is an area of heathland habitat, which is protected through European and national regulations, as a home to three species of ground-nesting birds. To meet the regulations, we must make sure that any new development does not have a significant impact on this habitat.

We can pass funds to other bodies, such as Hampshire County Council. The Government is also proposing to introduce a requirement that a proportion of the levy is spent directly in the neighbourhood in which the development takes place. This would be done in consultation with the local community.

How much we are proposing to charge

We commissioned consultants to carry out an economic viability study, looking at the viability of different types of development at different levy rates, to help up establish an appropriate rate. This study is available on our Community Infrastructure Levy page.

In October/November 2012 we sought views on the following levy rates:

Development typeProposed CIL rate/sqm
Retail (other than below)Nil
Retail warehouse/superstores£100
All other usesNil

How much we estimate the levy will raise

We estimate that if the proposed levy rate remains unchanged up to 2027, it would raise just over £8 million. This assumes that 1,000 Community Infrastructure Levy-liable new homes are built in Rushmoor between the introduction of the levy and 2027.

What developments will have to pay the levy

We will charge the levy on developments that involve an increase in floor area (gross internal area) of 100 square metres or more, or that result in the creation of one or more homes.

We will not charge the levy where there is no extension of floorspace as a result of the development, such as for changes of use.  However, this depends on whether the building has been in lawful use for a continuous period of at least six of the last 12 months.

Relief from the levy

In some cases, it will be possible to get relief from the levy. The three main types of relief will be:

  • Charitable relief - a charity landowner will be exempt from paying where the chargeable development will be used wholly, or mainly, for charitable purposes. We will be able to offer discretionary relief in other cases
  • Social housing relief - under the the regulations, we have to provide 100% relief from the levy on those parts of a development that are intended to be used as social housing
  • Exceptional circumstances - as the charging authority, we will have the option (subject to certain circumstances set out in regulations) to offer relief in cases where the levy would have an unacceptable impact upon the economic viability of a development

More information on the Community Infrastructure Levy

You will find more information:

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