3 June 2015
Sheffield City Council today (3 June) agreed to implement a new scheme to receive developers’ contributions for local infrastructure projects.
The Community Infrastructure Levy (CIL) is a new, national scheme to secure these contributions towards infrastructure provision through the planning system.
This will largely replace the individually negotiated planning arrangements known as Section 106 agreements, although these will continue for affordable housing and site specific requirements.
The Council will now begin charging CIL on qualifying developments that receive planning permission from 15 July.
This means that applications for most new developments other than domestic extensions now require a CIL Form to be submitted with a planning application to be valid.
Full details can be found on the Council’s website at Community Infrastructure Levy
Notes for editors:
The Community infrastructure Levy (CIL) 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 as a result of development. This includes new or safer road schemes, flood defences, schools, hospitals and other health and social care facilities, park improvements, green spaces and leisure centres.
The CIL is now the Government’s preferred mechanism for delivering the wider infrastructure demand that new development creates, such as additional school places or open space.
Section 106 has been further limited from 6 April 2015, when a restriction on pooling financial contributions from developers towards infrastructure was imposed. For these reasons CIL will be the best way of securing significant financial contributions for infrastructure from new developments.
CIL is expected to deliver an annual income of £3-4 million when established and between £11.3 million and £17 million by the end of 2019/20. There will be a gradual build-up of income, because payment is due on commencement of development and in instalments over two years thereafter, other than for the smallest payments.
In the medium to long term, CIL is anticipated to generate significantly more funds for infrastructure compared to Section 106, as it is more efficient than the current situation where contributions are negotiated on an individual basis as developments come forward.