HEALEY REVEALS CIL PLANS

17 February 2010

The Community Infrastructure Levy (CIL) is a new power that allows councils to raise funds from developers alongside new building projects to help build infrastructure, such as new schools, hospitals, roads and transport schemes as well as libraries parks and leisure centres.

The new system will give developers certainty over the contributions they have to make to support local communities when they plan projects, ensuring that developers pay a fair share towards new local services that are needed. The regulations, published in Parliament today, allow councils to potentially raise an extra £700m a year, where councils choose to use the new power.

Healey said: "The Government is helping housebuilders on the road to recovery by kick-starting work on construction sites and making sure the affordable homes that families need get built. However, it's not enough to build more homes. We need high quality neighbourhoods where local families can live and benefit from first class schools, roads, parks and leisure centres. That's why I'm confirming today that we will support communities by giving councils the tools they need to raise money for vital infrastructure.

"The new levy will be a big improvement to the existing system. It puts an end to site by site deals, which can be lengthy and uncertain. Many councils don't get the contribution to new infrastructure their area needs at present. CIL will bring improved transparencies for communities who will know what infrastructure is needed and how it will be funded, and fairness and predictability for developers."

The new system heralds the end for unpredictable charges attached to planning permissions. From April, Section 106 agreements will only be permitted if they are directly related to the new developments. By 2014 Section 106 agreements will be scaled back further to ensure they operate effectively alongside CIL.