Government has published a further consultation on proposed changes to the planning system, this time on how the proposed infrastructure levy (which it is intended will largely replace Section 106 agreements and the Community Infrastructure Levy) should work in England to make sure developers pay ‘a fairer share’ for local infrastructure and affordable housing.
While many of the proposals may be of limited interest to clerks, some are likely to be of more significance:
• That the ‘neighbourhood share’ collected under the new levy should not result in less value being allocated to neighbourhoods than in the existing Community Infrastructure Levy (CIL) system. Under the existing system, 15% of CIL receipts generated must be passed to the relevant parish council rising to 25% where the parish has a neighbourhood plan
• The consultation also poses the question whether the government should go further “to exceed the level of quantum currently secured by the Neighbourhood Share in CIL charging authorities and equivalent amounts in non-CIL charging authorities. Doing so would mean more revenue is allocated to, for instance, parish councils, for spending on hyper-local needs”
• That the introduction of the levy should be mandatory on local planning authorities, not discretionary as is the case with the CIL. However, its introduction across the country may be phased
SLCC intends to respond to the consultation and would urge clerks to consider doing likewise – in particular to questions 34, 35 and 44 which ask:
- Question 34: Are you content that the Neighbourhood Share should be retained under the Infrastructure Levy? [Yes/No/Unsure?]
- Question 35: In calculating the value of the Neighbourhood Share, do you think this should:
A) reflect the amount secured under CIL in parished areas (noting this will be a smaller proportion of total revenues)
B) be higher than this equivalent amount
C) be lower than this equivalent amount
D) Other (please specify)
- Question 44: Do you agree that the proposed ‘test and learn’ approach to transitioning to the new Infrastructure Levy will help deliver an effective system?
[Strongly Agree/Agree/ Neutral/Disagree/Strongly Disagree/Unsure]
The deadline for comments is 11:45pm on 9 June 2023.
If any clerks wish to contribute to SLCC’s response, please send comments by email to Andrew Towlerton, SLCC National Planning Advisor: [email protected] by Thursday 1 June 2023.