Changes to how English LPAs deal with CIL come into force this September
23 August 2019
"It covers charging, collecting, and reporting on developer contributions through both the Section 106 (S106) and CIL procedures."
Following consultation over the last 18 months, Parliament has now approved an amendment to the Community Infrastructure Levy (CIL) Regulations, which will come into force (in England only) on 1st September 2019. Unlike the May 2018 amendment, which focussed on Mayoral CIL, the latest amendment has a broader scope. It covers charging, collecting, and reporting on developer contributions through both the Section 106 (S106) and CIL procedures. Below is a summary of five of the main changes:
- CIL indexation adjustments: From 2020, CIL indexation will be based on a new index to be published by RICS, who have confirmed that it will be free to access and first published in October 2019. LPAs will also be required to produce annual summaries that show the latest index linked CIL rates for use in the next calendar year.
- CIL calculation on amended planning permissions: Where permissions are amended by a Section 73 application, any additional floorspace proposed will be charged at the latest indexed rate, with the remainder charged at the rate when originally permitted.
- S106 pooling limit removed: To increase flexibility to fund infrastructure projects, the pooling limit of five contributions per single infrastructure project introduced in 2015 is removed. There will now be no upper limit on how many developer contributions can fund a single project.
- Infrastructure Funding Statements (IFS) replace Regulation 123 lists: Aiming for more transparency within infrastructure funding, from 2020 the new CIL contribution regulations will replace Regulation 123 lists, with an annual requirement for LPAs to publish an IFS, detailing contribution receipts and spending/ Parish Councils will also need to report on CIL receipts and expenditure. Ministry of Housing, Communities & Local Government is to issue guidance on preparation of these documents in due course.
- Relaxation of CIL consultation requirements: To speed up the CIL adoption process, LPAs are now permitted to undertake a single round of consultation before adopting a charging schedule, rather than two rounds as previously required.
Other elements of the amendment relate to stet charging fees via S106 for monitoring and reporting on developer contributions; penalties associated with serving CIL commencement notices on development such as self-build schemes; and enforcement of non-payment of CIL.
For more information on how changes in CIL regulations could affect you, contact Planning Potential’s residential team on 020 7357 8000 or email [email protected].
David Williams, Consultant