By Richard Johnstone | 11 January 2013
Communities are to be given cash incentives to approve the construction of new homes, planning minister Nick Boles has revealed.
Boles yesterday announced that neighbourhoods that approve residential development in their local plans would receive up to 25% of the revenues from the Community Infrastructure Levy on subsequent construction projects. The levy is set to replace Section 106 ‘planning gain’ obligations on new developments, and is intended to pay for improvements such as parks, schools and health centres.
A quarter of CIL funding from housing developments will now be paid directly to parish and town councils that approve developments, to be used to fund community priorities, Boles said.
Under the Localism Act, parish and town councils have been given a responsibility to establish forums to draw up neighbourhood development plans.
Areas that have not yet approved a neighbourhood development plan, but where the levy is still charged, will receive a capped 15% share of the revenue arising from development.
Communities without a parish or town council will also be able to benefit from this incentive, as the local planning authority will now be obliged to spend the funds in accordance with local wishes.
Boles said the incentive programme, which he hopes to have in place from this spring, forms a key part of moves to get housing schemes approved.
‘This government is determined to persuade communities to accept more house building by giving them a tangible share of the benefits it brings,’ he said. ‘By undertaking a neighbourhood plan that makes space for new development, communities can secure revenues to make the community more attractive for everyone.’
Responding to the announcement, the Local Government Association said the levy was vital to funding ‘the underpinning building blocks that allow areas to thrive and grow, such as roads, railways and schools’.
Environment and housing board chair Mike Jones added: ‘Local people already have a say in how this funding is spent via democratically elected councils who represent their residents and therefore already work closely with communities to do this.
‘If parish and town councils are to be given a greater share of the levy, it will be essential that they work closely with local authorities to ensure that the total amount of funding available is used to the best effect for the whole community. The nature of these major infrastructure schemes means they reap benefits across a much larger geographical area than the immediate vicinity of the development.’
The British Property Federation welcomed the plan to devolve some of the cash.
However, it insisted the payments should not be considered ‘bungs’ to the local community, adding that the transfer would be acceptable only if the cash were subsequently spent on infrastructure.
Policy director Ian Fletcher said: ‘Giving neighbourhoods a bigger slice of the CIL will offer them a further incentive to support jobs and homes in their areas, and provide developers with greater reason to engage in the neighbourhood planning process.’
Communities are to be given cash incentives to approve the construction of new homes, planning minister Nick Boles has revealed.
Boles yesterday announced that neighbourhoods that approve residential development in their local plans would receive up to 25% of the revenues from the Community Infrastructure Levy on subsequent construction projects. The levy is set to replace Section 106 ‘planning gain’ obligations on new developments, and is intended to pay for improvements such as parks, schools and health centres.
A quarter of CIL funding from housing developments will now be paid directly to parish and town councils that approve developments, to be used to fund community priorities, Boles said.
Under the Localism Act, parish and town councils have been given a responsibility to establish forums to draw up neighbourhood development plans.
Areas that have not yet approved a neighbourhood development plan, but where the levy is still charged, will receive a capped 15% share of the revenue arising from development.
Communities without a parish or town council will also be able to benefit from this incentive, as the local planning authority will now be obliged to spend the funds in accordance with local wishes.
Boles said the incentive programme, which he hopes to have in place from this spring, forms a key part of moves to get housing schemes approved.
‘This government is determined to persuade communities to accept more house building by giving them a tangible share of the benefits it brings,’ he said. ‘By undertaking a neighbourhood plan that makes space for new development, communities can secure revenues to make the community more attractive for everyone.’
Responding to the announcement, the Local Government Association said the levy was vital to funding ‘the underpinning building blocks that allow areas to thrive and grow, such as roads, railways and schools’.
Environment and housing board chair Mike Jones added: ‘Local people already have a say in how this funding is spent via democratically elected councils who represent their residents and therefore already work closely with communities to do this.
‘If parish and town councils are to be given a greater share of the levy, it will be essential that they work closely with local authorities to ensure that the total amount of funding available is used to the best effect for the whole community. The nature of these major infrastructure schemes means they reap benefits across a much larger geographical area than the immediate vicinity of the development.’
The British Property Federation welcomed the plan to devolve some of the cash.
However, it insisted the payments should not be considered ‘bungs’ to the local community, adding that the transfer would be acceptable only if the cash were subsequently spent on infrastructure.
Policy director Ian Fletcher said: ‘Giving neighbourhoods a bigger slice of the CIL will offer them a further incentive to support jobs and homes in their areas, and provide developers with greater reason to engage in the neighbourhood planning process.’
