What is it?
A Community Infrastructure Levy is a fee issued by Local Authorities on new buildings or the development of existing buildings. Whilst Local Authorities do not have to charge it, in most cases they will, as unless there is a reprieve, they will not be able to levy infrastructure charges under the existing S 106 Planning Agreement regime after 6 April, 2015. Under the S 106 regime, local authorities have often charged substantial infrastructure payments through S 106 planning agreements before granting a planning consent for a development
What will CIL monies be used for?
Local authorities can only use CIL money for infrastructure in their area – such as new roads, school, recreational facilities etc.
So does it matter whether the local authority collects infrastructure levies through the existing S 106 planning agreement regime – or through CIL?
Yes because the cost is likely to be more than the existing costs under the S 106 regime. Wokingham Council have announced their CIL rates being £365 per sq metre – but slightly less for their Strategic Development Locations. The rates, once set, will be fixed but subject to an annual inflation linked increase.
I thought that CIL will take over from S 106 Agreements?
Not entirely, in some cases a S 106 Agreement will still have to be entered into but it will only relate to site specific matters including any affordable housing requirement – but not infrastructure.
But are local authorities around mid Berkshire going to be implementing CIL?
We are afraid so. Wokingham, Bracknell and Reading Councils state that they will be bringing it in on the 6 April 2015. Some local authorities have already started charging the levy.
I am a land owner and am thinking of disposing of my land for development – will it adversely affect the value of my land ?
Almost certainly! Whilst it will be the developer who will pay the levy when it starts work nevertheless it will impact on the price that you are offered. So this may result in less land coming to the market for development – just when the Government wants to see more houses built! So who knows if that will result in the next Government having to change the law on this subject – again!
Are there any exemptions?
The main exemption is if there is an implementable planning consent granted before CIL takes effect (in most cases the 6 April 2015). There are some other limited exemptions.
For more specific advice please speak to Dennis Eyriey, on denniseyriey@cliftoningram.co.uk