Community Infrastructure Levy
On 6 April 2015 the planning system saw a key change introduced by the Community Infrastructure Levy (CIL) Regulations 2010 take effect.
CIL allows local authorities in England and Wales to fund infrastructure by adopting a charge related to the size and type of new developments in their area, known as a charging schedule.
Regulation 123 of CIL introduces pooling restrictions from 6 April 2015. From this date, if five or more planning obligations have already been entered into since April 2010 for a specific infrastructure project or a type of infrastructure then no more may be collected. Many local authorities will have already reached this amount of obligations and careful due diligence will be required from both sides going forward.
Pooling restrictions for local authorities that have adopted a charging schedule will be in place from the adoption of the schedule. This will provide developers with greater certainty as to the level of contributions payable from their development, it is designed to be a more efficient and transparent system for the development industry. However, care needs to be taken to check whether a regulation 123 is in place and what this covers as this will dictate whether any site specific S106 obligations may also be imposed.
For local authorities that have not adopted a charging schedule, these changes may have an impact on the determination of applications, particularly where proposals have infrastructure demands that can no longer be sought through a s106 obligation.