Introduction to the Community Infrastructure Levy
- 1. Community Infrastructure Levy: an introduction Graham Gover Solicitor
- 7. Material still to come Localism Act • see Part 5 Chapter 2 of the Bill More Regulations Development Management PPS • Annex to replace Circular 5/05
- 8. Material still to come Localism Act • see Part 5 Chapter 2 of the Bill More Regulations National Planning Policy Framework
- 9. Why is it needed?
- 10. Why is it needed? Problems with s106 obligations:
- 11. Why is it needed? Problems with s106 obligations: • do not provide for incremental effects of development
- 12. Why is it needed? Problems with s106 obligations: • do not provide for incremental effects of development • major developments bear costs disproportionately
- 13. Why is it needed? Problems with s106 obligations: • do not provide for incremental effects of development • major developments bear costs disproportionately • only 6% of planning permissions make any financial contribution
- 14. Why is it needed?
- 15. Why is it needed? • inconsistency between LPAs
- 16. Why is it needed? • inconsistency between LPAs • can lead to the notion that permissions are bought and sold
- 17. Why is it needed? • inconsistency between LPAs • can lead to the notion that permissions are bought and sold • s106s are often negotiated, leading to delay and legal costs
- 18. Why is it needed? • inconsistency between LPAs • can lead to the notion that permissions are bought and sold • s106s are often negotiated, leading to delay and legal costs • lack of accountability of how the money is spent
- 19. What is infrastructure? Includes: • roads and other transport facilities • flood defences • schools and other educational facilities • sporting and recreational facilities • open spaces • affordable housing
- 20. What is infrastructure? Includes: • roads and other transport facilities • flood defences • schools and other educational facilities • sporting and recreational facilities • open spaces • affordable housing
- 21. What is infrastructure? Includes: • roads and other transport facilities • flood defences • schools and other educational facilities • sporting and recreational facilities • open spaces
- 22. What is CIL liable development?
- 23. What is CIL liable development? Generally: buildings permitted through some form of planning permission, except
- 24. What is CIL liable development? Generally: buildings permitted through some form of planning permission, except • a building into which people do not normally go
- 25. What is CIL liable development? Generally: buildings permitted through some form of planning permission, except • a building into which people do not normally go • or go intermittently, for inspecting or maintaining fixed plant or machinery
- 26. Setting the charge 1
- 27. Setting the charge 1 • Produce a charging schedule: a new DPD within the LDF
- 28. Setting the charge 1 • Produce a charging schedule: a new DPD within the LDF • Based on the infrastructure planning evidence drawn for development strategy
- 29. Setting the charge 1 • Produce a charging schedule: a new DPD within the LDF • Based on the infrastructure planning evidence drawn for development strategy • Strike a balance between raising funds and effect on economic viability
- 30. Setting the charge 2
- 31. Setting the charge 2 • Identify other sources of funding
- 32. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types
- 33. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types • The shortfall = rate of CIL
- 34. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types • The shortfall = rate of CIL • Can apply differential rates to
- 35. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types • The shortfall = rate of CIL • Can apply differential rates to - different zones
- 36. Setting the charge 2 • Identify other sources of funding • Identify indicative infrastructure projects or types • The shortfall = rate of CIL • Can apply differential rates to - different zones - intended use of development
- 37. Setting the charge 3
- 38. Setting the charge 3 Public consultation and examination
- 39. Setting the charge 3 Public consultation and examination • Consultation with communities
- 40. Setting the charge 3 Public consultation and examination • Consultation with communities • Publish for four + weeks prior to...
- 41. Setting the charge 3 Public consultation and examination • Consultation with communities • Publish for four + weeks prior to... • Examination in public
- 42. The chargeable amount R x A x Ip Ic
- 43. The chargeable amount R x A x Ip Ic Where:
- 44. The chargeable amount R x A x Ip Ic Where: A = the deemed net area chargeable at rate R
- 45. The chargeable amount R x A x Ip Ic Where: A = the deemed net area chargeable at rate R Ip = the index figure for the year in which PP was granted
- 46. The chargeable amount R x A x Ip Ic Where: A = the deemed net area chargeable at rate R Ip = the index figure for the year in which PP was granted Ic = the index figure for the year in which rate R took effect
- 47. The chargeable amount Cr x (C - E) C
- 48. The chargeable amount Cr x (C - E) C To find the value of A:
- 49. The chargeable amount Cr x (C - E) C To find the value of A: Cr = the gross internal area of the part of the development chargeable at rate R
- 50. The chargeable amount Cr x (C - E) C To find the value of A: Cr = the gross internal area of the part of the development chargeable at rate R C = the gross internal area of the chargeable development
- 51. The chargeable amount Cr x (C - E) C To find the value of A: Cr = the gross internal area of the part of the development chargeable at rate R C = the gross internal area of the chargeable development E = an amount equal to the gross internal areas of all builZZZZZZZZZZZZZZZ Z Z ZZZZ ZZ
- 52. Or, in plain English...
- 53. Or, in plain English... 2 The levy is charged £/m of the net additional increase in floorspace.
- 54. Or, in plain English... 2 The levy is charged £/m of the net additional increase in floorspace. Deduct the floorspace of any building to be demolished
- 55. Or, in plain English... 2 The levy is charged £/m of the net additional increase in floorspace. Deduct the floorspace of any building to be demolished Adjustments made for changes in the Index between date of permission and the charging schedule taking effect
- 57. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling
- 58. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities
- 59. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing
- 60. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing • “exceptional circumstances” only if
- 61. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing • “exceptional circumstances” only if - s106 exists
- 62. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing • “exceptional circumstances” only if - s106 exists - it must be more expensive than levy
- 63. Various exemptions 2 • minor development >100 m of gross internal floorspace, or one dwelling • charities • social housing • “exceptional circumstances” only if - s106 exists - it must be more expensive than levy - adverse effect on viability
- 64. Property as developed under GPDO Outbuilding (Class E) Rear Dormer (Class B) Rear Extension (Class A) Flue (Class G)
- 65. Administration
- 66. Administration • prior to commencement of development of PD, LDO etc, serve notice of chargeable development
- 67. Administration • prior to commencement of development of PD, LDO etc, serve notice of chargeable development • the collecting authority serves a liability notice + local land charge
- 68. Administration • prior to commencement of development of PD, LDO etc, serve notice of chargeable development • the collecting authority serves a liability notice + local land charge • service of a commencement notice
- 69. Administration • prior to commencement of development of PD, LDO etc, serve notice of chargeable development • the collecting authority serves a liability notice + local land charge • service of a commencement notice • collecting authority serves a demand notice
- 70. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
- 71. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
- 72. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
- 73. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
- 74. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days
- 75. Payment Chargeable amount Instalments less than £10,000 60 days from commencement £10,000 to £19,999.99 60, 120 days £20,000 to £39,999.99 60, 120, 180 days £40,000 or more 60, 120, 180, 240 days Land payment for payment in kind
- 76. Who is liable to pay?
- 77. Who is liable to pay? • by default, the owner of the land since that person generally benefits from increased land values
- 78. Who is liable to pay? • by default, the owner of the land since that person generally benefits from increased land values • ‘material interest’: freeholder or leaseholder with at least seven years to run
- 79. Who is liable to pay? • by default, the owner of the land since that person generally benefits from increased land values • ‘material interest’: freeholder or leaseholder with at least seven years to run • another person can volunteer liability
- 80. What if they don’t pay?
- 81. What if they don’t pay? • surcharge for failing to assume liability or serve notice, late payment
- 82. What if they don’t pay? • surcharge for failing to assume liability or serve notice, late payment • late payment interest
- 83. What if they don’t pay? • surcharge for failing to assume liability or serve notice, late payment • late payment interest • CIL stop notice, enforceable by unlimited fine and/or injunction
- 84. What if they don’t pay? • surcharge for failing to assume liability or serve notice, late payment • late payment interest • CIL stop notice, enforceable by unlimited fine and/or injunction • recovery by liability in the magistrates’ court: distress warrant, commitment to prison
- 85. Applying the CIL collected
- 86. Applying the CIL collected “A charging authority must apply CIL to funding to support the development of its area” Reg 59
- 87. Applying the CIL collected “A charging authority must apply CIL to funding to support the development of its area” Reg 59 • may apply it outside its area
- 88. Applying the CIL collected “A charging authority must apply CIL to funding to support the development of its area” Reg 59 • may apply it outside its area • may pass to another person for that person to apply to funding infrastructure
- 89. Applying the CIL collected “A charging authority must apply CIL to funding to support the development of its area” Reg 59 • may apply it outside its area • may pass to another person for that person to apply to funding infrastructure • localism!
- 90. Reporting
- 92. Reporting Annual reports • receipts
- 93. Reporting Annual reports • receipts • expenditure
- 94. Reporting Annual reports • receipts • expenditure • land payments
- 95. Reporting Annual reports • receipts • expenditure • land payments st Must appear on their website by 31 December following the report
- 96. The decision matrix for s106’s 1. Is any part of NO NO CHANGE the development Circular 5/05 applies capable of being until new policy YES The s106 must meet the new statutory test in YES
- 97. Policy test para B5 Circular 5/05
- 98. Policy test para B5 Circular 5/05 A planning obligation must be: (i) relevant to planning; (ii) necessary to make the proposed development acceptable in planning terms; (iii) directly related to the proposed development; (iv) fairly and reasonably related in scale and kind to the proposed development; and (v) reasonable in all other respects.
- 99. Statutory test Regulation122 A planning obligation may only constitute a reason for granting planning permission if it is: (i) relevant to planning; (ii) necessary to make the proposed development acceptable in planning terms; (iii) directly related to the proposed development; (iv) fairly and reasonably related in scale and kind to the proposed development; and (v) reasonable in all other respects.
- 100. The decision matrix for s106’s The s106 must meet the new statutory NO 2. Is CIL operating NO Will the in the LPA now? determination be made after 6 April YES YES
- 101. The decision matrix for s106’s The s106 must NO 3. Is the proposed meet the new s106 contribution for statutory test in infrastructure capable YES YES. The s106 can deliver the proposed infrastructure
- 102. The decision matrix for s106’s NO 4. Has the LPA set out CIL infrastructure list on its website? YES NO. The s106 cannot deliver the proposed infrastructure
- 103. The decision matrix for s106’s 5. Is the obligation 6.(After 06.04.14) duplicated by the NO Have five contributions LPA’s CIL already been sought for infrastructure list? the infrastructure via YES YES NO NO. The s106 YES. The s106 can cannot deliver the deliver the proposed proposed infrastructure infrastructure contribution
- 104. If all that is too much, remember... 1. All planning obligations from now on must pass the Regulation 122 test 2. LPAs cannot double-charge for CIL-funded infrastructure using planning obligations 3. LPAs are limited to seeking five contributions per item of CIL-funded infrastructure for items not appearing on their website 4. No limit for non-CIL funded infrastructure items
- 105. Are you excited about the prospect of being a planning practitioner under the Coalition Government?
- 106. Are you excited about the prospect of being a planning practitioner under the Coalition Government? Q &A
Editor's Notes
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