Community Infrastructure Levy (CIL)

The Community Infrastructure Levy (CIL) was introduced  by the Government to try to ensure that when land is developed, it comes with the necessary infrastructure to support it such as schools, public transport and leisure facilities.

CIL is charged on almost all new buildings to ensure that development contributes towards the infrastructure needed to support growth in an area. Previously many smaller developments made no specific contribution towards infrastructure, even though, collectively, they could place significant demands on local facilities.

Development started under general consent is also liable to pay CIL. This includes permitted development rights granted under the General Permitted Development Order 2015.

Full Council agreed to adopt Community Infrastructure Levy Charging Schedule on 13 November 2017.

The implementation of the Community Infrastructure Levy takes place on 22 January 2018, meaning that any qualifying planning decision made on after this point will be subject to a CIL charge.

Fact sheet for applicants    

Find out how the CIL affects you

CIL Information for Town and Parish Councils

The Community Infrastructure Levy is a new planning charge, introduced by the Government through the Planning Act 2008 to provide a fair and transparent means for ensuring that development contributes to the cost of the infrastructure it will rely upon, such as schools and roads. The levy applies to most new buildings and charges are based on the size and type of new floor-space created.

The Government has decided that a tariff-based approach provides the best framework to fund new infrastructure. CIL is considered to be fairer, faster and more certain than the current system of planning obligations which are generally negotiated on a ‘case-by case’ basis. Levy rates are set in consultation with local communities and developers and provide much more certainty and are ‘up front’ about how much money developers will be expected to contribute.

Statistics show that under the system of planning obligations only a small number of all planning permissions nationally (usually the largest schemes) brought any significant contribution to the cost of supporting infrastructure. Through CIL, all but the smallest building projects will make a contribution towards additional infrastructure that is needed as a result of development.

Almost all development has some impact on the need for infrastructure, services and amenities so it is only fair that such development pays a share of the cost.

Infrastructure which can be funded by the levy includes schools, transport, flood defences, hospitals, community facilities and other health and social care facilities. This definition allows the levy to be used to fund a very broad range of facilities and gives flexibility on what infrastructure may be funded.

The Levy can be spent on 'the provision, improvement, replacement, operation or maintenance of infrastructure'.

Local authorities in England and Wales will be empowered, but not required, to levy on most types of development in their areas. It should be noted that in 2015 limitations to Section 106 planning obligations came into force. Which has meant that planning obligations may only requested when they meet the three key tests:

  • Necessary to make the development acceptable in planning terms
  • Directly related to the development; and
  • Fairly and reasonably related in scale and kind to the development
Charging authorities must produce a document called a charging schedule which sets out the rate for their levy. This is a new type of document within the folder of documents making up the council’s Local Plan but will not be part of the statutory development plan.   

The levy is intended to encourage development by creating a balance between collecting revenue to fund infrastructure and ensuring that the rates are not so high that they put development at serious risk. The council draws on the infrastructure planning that underpins the development strategy for the area to help identify the total infrastructure funding gap.

Rates set should be supported by evidence, in West Lindsey’s case a whole plan viability assessment, and the area’s infrastructure needs. One standard rate can be set for an area or, if justified, specific rates for different areas and types of development can be established. The ability to set differential rates gives charging authorities more flexibility to deal with the varying circumstances of each are they work in.

Consultation must be undertaken on the draft schedule and the proposed levy rates. A public examination by an independent person, usually an Inspector from The Planning Inspectorate, is then required before the charging authority can formally approve it.

The Local Authority can either adopt CIL at the rates advised by the Examiner or choose not to impose CIL.  A new evidence base, consultation process and Examination but be undertaken to set different rates from those recommended by the Examiner.

Charging authorities are required to spend the levy’s revenue on what they see as the infrastructure needed to support the development of their area. The assessment of ‘need’ will largely by informed by the Infrastructure Delivery Plans (IDPs) published by each authority alongside their Local Plans. The levy is intended to focus on the provision of new or improved infrastructure and should not be used to remedy pre-existing deficiencies unless those deficiencies will be made more severe by new development.  
To ensure that the levy is open and transparent, charging authorities must prepare short reports on the levy for the previous financial year which must be placed on their websites by 31 December each year. These reports will set out how much revenue from the levy has been received, what it has been spent on and how much is left.

Planning obligations (funding agreements between the local planning authority and the developer) will continue to play an important role in helping to make individual developments acceptable.

The CIL levy is intended to provide infrastructure to support the development of an area rather than to make individual planning applications acceptable in planning terms. As a result, there may still be some site specific impact mitigation requirements without which a development should not be granted planning permission (e.g. affordable housing, local highway and junction improvements, primary schools, health and landscaping). Therefore, there is still a legitimate and necessary role for development planning obligations to enable a local planning authority to be confident that the specific consequences of development can be mitigated. Infrastructure Funding Statements (IFS) which report on all CIL and s106 contributions collected by the Local Authority will be published on the Website on or before 31 December for the preceding year.  Infrastructure Funding Statements will replace the Regulation 62 Reports previously required by the CIL Regulations. The first IFS must be published on or before 31 December 2020.

In calculating individual charges for the levy, charging authorities will be required to apply an annually updated index of inflation.  The regulations currently require the use of BICS All Tender Index, using the rate applicable on 1 November (Quarter 4) of the preceding year, however recent changes to the CIL Regulations requires that the CIL rate be indexed using a new CIL indexation rate produced by the RICS.  The use of this indexation method is required once the new rate becomes available.  Indexation ensures the levy is responsive to market conditions.

Community Infrastructure Levy Zones Map

Community Infrastructure Levy map


Regulation 121A and 121B Annual Infrastructure Funding Statements

Will be published in this section.

Regulation 62 Annual Finance Report links

Regulation 62A Local Council Annual Finance Reports Year

Appendix A CIL Reg 62

Infrastructure Funding Statement

Infrastructure Funding Statement - December 2020

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