Community Infrastructure Levy

The Community Infrastructure Levy (CIL) is a levy that councils can choose to charge on new development to raise funds to provide infrastructure.

About the Community Infrastructure Levy

The purpose of a Community Infrastructure Levy is to raise money to provide infrastructure that is needed to support development. This money would be generated through a charge per square metre (sqm) on new floorspace created. The money raised could be used towards transport schemes, schools, parks, green spaces and other community facilities.

The Community Infrastructure Levy will largely replace section 106 (s106) developer contributions, although these can still be used, in particular for site-specific infrastructure and to provide affordable housing.

Our approach to the Community Infrastructure Levy

The introduction of the Community Infrastructure Levy has always been of some concern to us. The main reasons for this are:

  • The difficulties of funding Special Protection Area (SPA) mitigation measures through the Community Infrastructure Levy, as some developments would not generate any Community Infrastructure Levy money (for example, conversions that generate no additional floorspace) and would not therefore fund their own mitigation
  • Anticipated income levels are likely to be lower than income received through s106 because of the types of development that are exempt from the Community Infrastructure Levy, and the fact that on qualifying developments, the levy is only chargeable on net additional floorspace. This means there will be less money to spend on infrastructure
  • We would need additional resources to implement a Community Infrastructure Levy charge

Because of the complexity of the Community Infrastructure Levy, the resources needed to establish a charge and to implement it and the likelihood of no financial advantage towards the funding of infrastructure in the borough, our Cabinet had agreed that until we have greater certainty about the future of the Community Infrastructure Levy under the current, or a future, government, we should delay the introduction of a Community Infrastructure Levy charging schedule.

You can find more details about this in the pdf icon Cabinet report of July 2014 about the Community Infrastructure Levy [196kb].

Review of the Community Infrastructure Levy

In 2015, the government launched a review of the Community Infrastructure Levy and appointed an independent panel to assess if it does, or can, provide an effective way of funding infrastructure.

The panel has concluded that the current system is not as fast, simple, certain or transparent as originally intended.

In the Housing White Paper, published in February 2017, the government stated that it will examine the options for reforming the system of developer contributions, including making sure they benefit communities directly, and will respond to the independent review.

It was then announced in the Autumn Budget 2017 that the government will be launching a consultation on detailed proposals on changes to the Community Infrastructure Levy. 

We will be considering the implications of these proposals and reviewing the previous decision we made to put the Community Infrastructure Levy on hold. The viability evidence prepared to support the Local Plan has taken into account potential future Community Infrastructure Levy rates. This evidence will be available to inform an emerging Community Infrastructure Levy charge, subject to the need to update it to take into account changes the government proposes to the Community Infrastructure Levy.

You can find out more information about the Community Infrastructure Levy on the GOV.UK website.

 

 
Did you find what you were looking for?Did you find what you were looking for?
  1.  
  2.  
    1. We use your views to improve our website. If you have a query about our services, please email customerservices@rushmoor.gov.uk.

    1. We use your views to improve our website. If you have a query about our services, please email customerservices@rushmoor.gov.uk.

 

A - Z of Council Services