What is the current position in relation to the Community Infrastructure (CIL)?
The Coalition Government confirmed via the Localism Bill its intention that CIL will remain in place. CIL came into force on 6 April 2010 and was introduced by the previous government as a means of funding infrastructure provision.
The levy allows councils to raise funds from developers undertaking new building projects in their areas to finance infrastructure required aa result of development. CIL is calculated by reference to a charschedule which determines the rate per square metre. The net additional increase in floor space as a result of development is then multipied by the rate.
The Coalition Government states that CIL will be continued "because itprovides a fairer system to fund new infrastructure". CIL is considerto be more transparent and straightforward than using section 106 obligations to fund infrastructure, with levy rates set in consultation with local communities and developers.
However, there will be some reforms to CIL. One of the reforms isintended to ensure that communities and other bodies receive a meaningful proportion of the revenues raised. They will be ablspend this money locally on the services they want, by either contributing to larger projects funded by the council or funding smaller local projects. The funds may also be used for the future ongoing costs of the infrastructure.