Community infrastructure levy

Here you will find information on the community infrastructure levy, a charge that can be made on new developments to help pay for supporting infrastructure necessary as a result of the development.

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.
Work is currently ongoing to develop evidence towards the Local Plan. This includes looking at what infrastructure is required to deliver the plan and how it will be delivered.

If the evidence demonstrates a community infrastructure levy is appropriate in Northumberland, a draft charging schedule will be prepared. The draft charging schedule would be subject to public consultation before being subject to examination by an independent examiner. 

The introduction of a community infrastructure levy in Northumberland would not replace the use of Section 106 Agreements. In broad terms, Section 106 Agreements would generally be limited to more site-specific measures and to the provision of affordable housing.