Many local authorities have yet to adopt a Community Infrastructure Levy (CIL) charging schedule. Indeed, we are aware that a good number of planning authorities are at least 12 months – 2 years off finalising an appropriate local area CIL tariff tax on development.
We have been waiting on DCLG to announce a deferral of the April 2015 deadline that marks the point after which local authorities will not be able to raise pooled funds via S106 agreements for either specific projects or local area infrastructure, such as education. If 5 or more obligations for a piece of infrastructure have already been entered into since April 2010 and the item is eligible for funding under CIL, then it will no longer be possible for authorities to seek contributions from S106 whether they have a CIL charging schedule in place or not. Authorities who have yet to adopt a CIL charging schedule or who have decided not to levy CIL against strategic sites will legally find themselves unable to raise any pooled funds towards local infrastructure requirements.
So, the consequences may be that where there is no CIL in place, developers and house builders may find situations where there planning obligation payments will have to be significantly reduced focusing mainly on the delivery of affordable housing. Does this mean we will see a raft of planning applications submitted in locations where there is no adopted CIL charging schedule after the 6th April 2015 deadline?
We may also see authorities within such locations coming under further financial pressure as their ability to raise capital receipts for local infrastructure falls away in the short term and until a CIL charging schedule is in place.
If you would like to know more about this important situation, please contact:
John Foddy – firstname.lastname@example.org