Further Reforms to CIL due in the Summer

05 March 2018

The Government has published a consultation document titled Supporting Housing Delivery Through Developer Contributions – Reforming developer contributions to affordable housing and infrastructure.

This reflects many of the changes to the operation of the Community Infrastructure Levy (CIL) and S106 contributions that were outlined within the Autumn Budget in 2017, including:

-          Indexation on CIL for residential schemes to reflect the House Prices Index (creating the potential for greater divergence in areas of lower demand compared to those of higher demand);

-          Removal of S106 pooling restrictions in some circumstances including when developing across several strategic sites (which could mean the return of tariffs);

-          Streamlining the process of adopting and amending a CIL Charging Schedule (which could mean new CILs being prepared within 12 months);

-          Replacement of the ‘Regulation 123’ List for CIL spending with a broader Infrastructure Funding Statement (meaning a clearer link to infrastructure delivery);

-          The introduction of a Strategic Infrastructure Tariff for combined authorities to deliver cross-boundary infrastructure (necessary for the delivery of larger projects).

If adopted following consultation, these changes confirm that CIL is here to stay. Updated Regulations should be made in summer 2018.

For viability, an emphasis on transparency and openness is clear. In an attempt to reduce viability issues arising at the application stage, far greater emphasis will be placed on getting viability right during Local Plan production.

Looking further forward, emphasis is placed upon the potential to set developer contributions at a national level and to make them non-negotiable. No detail of this more radical potential change is provided at this time, but clearly this would mean a significant change in how such contributions are assessed and accounted for within the cost of development.

In the meantime, the Government is seeking to amend the present system of setting CILs and developer contributions locally.

As with the revised draft NPPF consultation, the deadline for comments is 10th May.



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