What will it cost?
The Community Infrastructure Levy (“CIL”) signals a new approach to providing investment to communities through the planning process. Traditionally, with new developments, developers have negotiated and entered into section 106 agreements with local authorities which, amongst other things, would detail what monies the developer had to contribute towards infrastructure and local services as a condition of planning being granted. These agreements have often been the subject of heavy negotiation and the introduction of the CIL is seen as a way of ensuring that developers know the costs of their development proposals in advance of committing to a project.
The monies raised through the CIL can be used for local infrastructure and the definition of infrastructure is drafted widely in the governing Regulations to include roads, flood defences, transport facilities, educational facilities, medical facilities, sporting and recreational facilities and open spaces.
If a local authority wishes to charge the CIL, the local authority in a region which produces a development plan, will need to prepare a draft charging schedule. A number of local authorities have already produced charging schedules and some are consulting on their proposals in this regard. Mid Sussex has prepared a draft charging schedule and the consultation closes on 21 March 2012. Only those areas of Mid Sussex which fall outside the South Downs National Park Authority are included in the consultation as the National Park Authority will look at the CIL for those areas within the Park. Portsmouth has completed its consultation exercise and the CIL will apply to all development permitted after 1 April 2012.
However, what is worth bearing in mind is that the introduction of the CIL may impact on self-builders and those looking to extend their properties where any such works require planning permission.
Under the Regulations new buildings and extensions over 100m² are liable to pay the CIL. The size threshold does not apply where one or more new homes are being built on a site. The payment of the CIL will be due when development commences although some local authorities may permit payments to be made in instalments.
If you are considering an extension to your property which may be caught by the CIL or indeed if you are contemplating a self-build, you will need to contact the relevant local authority to ascertain whether a charging schedule has been produced. If one has, you will then be able to consult the schedule and calculate your liability. The CIL costs will need to be factored into your development proposals.
If you have any queries, please do contact the writer, Holly Armstrong via email at email@example.com.