By Richard Johnstone | 16 April 2013
The government is consulting on proposed changes to the Community Infrastructure Levy, including plans to make councils provide greater clarity on their charges.
The levy, introduced in 2010, allows local authorities in England and Wales to raise funds from developers undertaking new building projects in their area. The money can be used to fund a wide range of infrastructure that is needed to support the development of the area.
It was largely intended to replace ‘planning gain’ section 106 agreements between developers and local authorities.
But developers have argued that the levies can be set too high and act as a brake on development. In response, the government proposes that councils should demonstrate that in setting the amount of the charge they have ‘struck an appropriate balance between the desirability of funding infrastructure from the levy and the potential effects of the levy on economic viability of development’ across the area.
Authorities will also now be able to accept payments in kind from developers, such as providing infrastructure instead of cash or land.
Other changes proposed ensure that, where planning permission is phased, levy payments are also made in phases.
The regulations also confirm that councils have until April 2015 to decide to adopt the levy.
The British Property Federation has welcomed the proposed changes. BPF chief executive Liz Peace said: ‘If the homes and jobs that are so desperately needed are to be forthcoming, it is imperative that schemes are not held up by flaws in the mechanics of the Community Infrastructure Levy. We are delighted that government has worked with the industry and listened to our concerns, and that many of these issues are to be consulted upon.
‘It’s now important the government gets on with implementing these amendments, particularly with development in much of the country at a standstill.’
The consultation runs until May 28.
