Will your property development be liable for CIL payments?

Press Release: 20/01/2014

House

The way councils secure funding for the provision of infrastructure needed to support new development in their areas is changing.

The current system of using planning obligations under Section 106 of the Planning Act will be replaced by the introduction of the Community Infrastructure Levy (CIL) - a new statutory charge to be paid by developers on certain types of developments in the district to help fund vital infrastructure. Winchester City Council is setting out how the scheme will work across the district following its introduction in April 2014.

Any planning permission that is dated on or after 7 April 2014 that meets the CIL criteria will attract the levy. In addition, some buildings which do not require permission from the Council, because they are being erected under permitted development rights for example, will also be affected. To find out if your development will be charged you can use the calculator available on the Winchester City Council website: www.winchester.gov.uk/planning/CIL/cil-calculator

Cllr Victoria Weston, Portfolio Holder for Built Environment, said:

The CIL payments are good news for local people, as the main aim of these changes will make the developer contributions system fairer, faster and more transparent allowing greater choice and flexibility in relation to the funding of infrastructure required to support new developments and communities.

The Council is working on details which will help inform how CIL money will be spent (its Regulation 123 list) and this will be finalised in March 2014. We are also proposing to develop a five-year programme of projects to be funded either wholly or partly though CIL which will be reviewed and updated on an annual basis.

The Government has decided that 15% of any CIL collected will be passed to the Parish Council in which the development took place and they will be able to decide how these funds are spent. In parishes with a Neighbourhood Plan the proportion is 25%. The City Council will be talking to parish councils shortly about how the system will work including what investment in infrastructure is needed to support communities where new development is taking place.

CIL can be collected on any new build or extension if it generates more than 100 sqm of new floor area and also where the development involves the creation of one or more dwellings. The levy covers schemes for residential, retail and hotel development but does not apply to affordable housing or buildings used for charitable purposes.

Winchester City Council will start to charge CIL on 7 April 2014 and has set out the rates in its adopted Charging Schedule which can be viewed on the website: http://www.winchester.gov.uk/planning/cil/cil-charging-in-winchester  

The area of the district within the South Downs National Park will not be covered by the Winchester CIL Charging Schedule. The National Park Authority is intending to develop its own Charging Schedule. For now the current arrangements will continue in this part of the District.

However CIL will not replace all Section 106 agreements. These will still be needed in some cases to ensure development proposals are acceptable and to deliver affordable housing on- or off-site.

The Government recognises that, for CIL to be a success, councils will need to commit sufficient resources to enable the new regime to operate effectively and the City Council will use up to 5% of its income to support the administration of the levy.