SpeakIT Plus
Home > My Services > Planning and building > old West Lindsey Community Infrastructure Levy (CIL) > old Community Infrastructure Frequently Asked Questions
old Community Infrastructure Frequently Asked Questions

Community Infrastructure Frequently Asked Questions

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.

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. However, reforms have been introduced to restrict the use of planning obligations.

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. However items that are identified as being funded by CIL (those items detailed on the Reg. 123 list) cannot then also be required as part of a s106 agreement.

Development will be liable for CIL if it:

  • Involves new build of at least 100m2 gross internal area (GIA) floor-space; or
  • Involves the creation of one or more dwellings

This includes development permitted by a ‘general consent’ (including permitted development).

Development will not be liable for CIL if it:

  • Involves only change of use, conversion or subdivision of, or creation of mezzanine floors within a building which has been in lawful use for at least six months in the 3 years prior to the development being permitted and does not create any new build floor-space; or
  • Is for a building into which people do not normally go, or go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery; or
  • Is for a structure which is not a building, such as pylons or wind turbines; or
  • Is permitted by a ‘general consent’ (including permitted development) commenced before 6 April 2013; or
  • Is for a use which benefits from a zero or nil charge (£0/m2) as set out in a CIL Charging Schedule
The responsibility to pay the levy rests with the ownership of land on which the liable development will be situated. Although liability rests with the landowner, the regulations recognise that others involved in a development may wish to pay. To allow this, anyone can come forward and assume liability for the development.

The charge is levied in £ / m² on the net additional increase in floor-space. It will normally be collected as a monetary payment, although there is also provision for it to be paid by transfer of land to the local authority if certain criteria are met.  An 'In Kind Policy' will be available on the website.

The charge levied in £ / m2 on the net additional increase in floor-space for the CIL is exempt from VAT. 

In calculating individual charges for the levy, charging authorities will be required to apply an annually updated index of inflation to keep the levy responsive to market conditions.

The levy’s charges become due from the date of commencement of a chargeable development. When planning permission is granted, the council will issue a liability notice setting out the amount of the levy and the payment procedure.

Unlike contributions collected through S106 agreements the triggers for payment are not negotiated and there is no time constraint for the spending of monies collected through CIL.

Yes, an instalment policy will be available on the website.

 The levy’s charges are intended to be easily understood and easy to comply with. Most of those liable to pay the levy are expected to pay their liabilities without problem or delay. However, where there are problems in collecting the levy charging authorities will have the means to penalise late payment, through surcharges. In cases of persistent noncompliance the regulations also enable collecting authorities to consider more direct action such as the issuing of a CIL Stop Notice or applying to the courts for seizure of assets to pay the outstanding monies or for custodial sentences.

No. There is no CIL liability for a planning permission if that planning permission was granted before the CIL implementation date. The relevant date is the date of the issuing of the planning permission decision notice.  Therefore any application where the principle of development has already been approved, prior to the adoption of CIL will not be eligible to pay CIL.

The District Council will be preparing some detailed guidance notes for applicants to help guide them through submission of planning applications and the related CIL documentation and these are available on the website.  The process relating to CIL is strictly prescribed by the CIL regulations, with penalties if the process is not correctly followed.  Applicants are strongly advised to read this guidance and seek further advice from the District Council or other sources if they are unclear on any aspect.

In accordance with the Regulations the following development may receive relief from CIL:

  • Charitable development
  • Social housing development
  • Self-build development
  • Self-build residential annex or extension

Guidance notes will be available on the website to explain the process for claiming relief. 

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.  

Projects that CIL monies will be used for are identified in the Reg.123 list for each Authority and in the case of West Lindsey, these items are the Lincoln Eastern Bypass and Secondary Education. These projects are supported by the Infrastructure Delivery Plan and following consultation in line with the CIL regulations Prosperous Communities Committee formally agreed the Reg. 123 list on 26 April 2016.  The Public examination of the Council’s CIL submission including the Reg. 123 took place early in 2017 and was approved by the Secretary of State, who agreed that the delivery of this strategic infrastructure was essential for delivering the growth identified in the new Local Plan.

Once CIL has been implemented it becomes the responsibility of the charging authority (West Lindsey) to periodically review the Reg. 123 list.  National guidance suggests annually after the adoption of CIL, but it could be longer if there are likely to be no changes. 

If changes were deemed necessary to the Reg. 123 list, this would be a policy decision for the Prosperous Communities Committee to consider in future.

Under the requirements of the Community Infrastructure Levy Regulations 2010 (as amended) 15% of the CIL collected as a result of development in a given parish area will be passed to the relevant Town/Parish Council.  Payments will be capped to £100 per council tax dwelling per year, for example a Town/Parish with 50 dwellings cannot receive more than £5,000 in CIL receipts per year.  In areas with no Parish Council, West Lindsey District Council, as the local charging authority, will determine how to distribute the funding but must use the 15% to support the development of the relevant area.

Areas with an adopted Neighbourhood Plan will receive 25% of the CIL receipts, with no cap on the amount of monies they may receive each year.  The monies may be used to support the development of the local area by funding; provision, improvement, replacement, operation or maintenance of infrastructure or anything else that is concerned with addressing the demands that development places on an area.

The District Council is required to make payments to Town/Parish Councils twice a year.  Therefore it is anticipated that payments in respect of CIL received between 1 April to 30 September will be paid to the specific Parish Council by the end of October of that financial year and pay CIL monies received from 1 October to 31 March by the end of April.

Charging authorities may pass money to bodies outside their area to deliver infrastructure which will benefit the development of their area, such as the county council, for education and transport infrastructure. Charging authorities will also be able to collaborate and pool their revenue from their respective levies to support the delivery of ‘sub-regional infrastructure’.

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.

 Yes, there will be a number of training events provided for Councillors and Parish Councils in the New Year.  There will also be an information leaflet developed specifically for communities to help with the implementation of CIL across West Lindsey.  Whilst, subject to Committee approval, CIL is scheduled for implementation in early January, there will be inevitably a time lag between implementation and when monies will be payable, which is why the training is scheduled for the New Year.

Indicates mandatory fields

Was this information helpful?
Was this information helpful?