TO CIL OR NOT TO CIL?

Alison Fairhurst DCLGJanuary 2016

• Most development has impact on/benefits from infrastructure.• Planning Value Uplift (should pay its way and can)

S106 planning obligations Flexible but…•Slow down planning application process, sometimes by many months•Costly/complex to negotiate•Lack certainty and transparency•Attached to minority of schemes; unable to deal with cumulative impacts

Community Infrastructure LevyFairer; faster; more certain and transparent

– Fixed charge on new floor space (£x per square metre)– Subject to public consultation and examination– Restricts operation of S106 (“pooling restriction”)– Community gets 15% of receipts (25% where neighbourhood plan in place)

Rationale

CIL – Where Are We Now?

• 102 Charging Authorities (Selby and Birmingham latest)

• Over 100 more taken substantive steps towards CIL adoption

• CIL charging authorities doubled between Oct 2014-Oct 2015

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CIL Review“Where communities benefit from development they are also more likely to support it, and the Community Infrastructure Levy has played a vital role in contributing to local infrastructure and creating that local support.

As a government we want to build more homes, supported by people who live in the area and this review will look for new ways in which proposed development can benefit whole areas.”

CIL : Looking AheadCIL Review - Liz Peace •Is CIL meeting its objectives - faster, fairer, more certain and transparent funding for infrastructure •Relationship between CIL and s.106 agreements•Examine how reliefs and exemptions operate•Does neighbourhood element of CIL increase community support for development ?Led by independent Panel, reporting to Ministers

Call for evidence until ………………………………..

CIL Research coming soon…..

SECTION 106 UPDATE

Housing and Planning Bill 2015:•Introducing a dispute resolution process to help speed up section 106 negotiations:

• Process requested after a set period of time• Appointed person to produce a report in set timeframes• Report would be binding

•The Secretary of State to have a broad power to restrict the enforcement of planning obligations in relation to affordable housing in certain situations

• Included a broad definition of affordable housing which includes starter homes

Section 106 BA/BC affordable housing renegotiations• Extending the sunset clause by a further 2 years

Starter Homes and CIL

• 200,000 Starter Homes available exclusively for first-time buyers under 40, at a minimum of 20% below open market value.

• Will each cost no more than £250,000 outside London (£450,000 in London), with resale and letting restrictions for first five years.

• Will not be subject to section 106 affordable housing and tariff-based contributions, to help pay for discount.

• Will also bring forward regulations to exempt Starter Homes from CIL.

• Councils will still be able to seek section 106 contributions for site-specific infrastructure improvements for Starter Home developments through the planning process.

• Starter Homes commitment will be delivered through the Housing and Planning Bill; national planning policy changes which we are currently consulting on; and targeted funding.