When new developments occurs, developers are usually required to pay a contribution towards the funding of associated infrastructure, or measures to address the impact of development. Such contributions have usually been secured through what are commonly referred as ‘Section 106 Agreements’, ‘Planning Obligations’ or ‘Planning Gain’. These are legally binding agreements negotiated between local authorities and developers.
The Planning Act 2008 introduced a new way of securing developer contributions, named the Community Infrastructure Levy (CIL). This is a levy that local authorities can choose to charge on new developments in their area. This is a charge on new development to help pay for infrastructure the Council, local communities and neighbourhoods want.
The levy is based on the size/ type of a new development and may also be based on values in different geographic locations. In identifying an appropriate charge, an effective balance must be struck between funding infrastructure from the levy and the potential effects of the levy on the economic viability of development. Click here to find out more about the Community Infrastructure Levy.