Community Infrastructure Levy
Community Infrastructure Levy (CIL) is a charge that councils and the Mayor of London can apply to new developments like new houses or flats, residential extensions of over 100sqm, and commercial development. The money collected is spent on new infrastructure, such as roads, schools and parks. CIL is separate from Section 106 planning obligations, which are used to provide specific infrastructure associated with development.
What can CIL be used for?
- The levy must be spent on infrastructure needed to support development in the borough. For example, transport, social and green infrastructure. We cannot use the levy to fund affordable housing.
- The Localism Act 2011 and the CIL Regulations require that a 'meaningful proportion' of the income raised through CIL in a neighbourhood be spent in the neighbourhood in which the development took place. This is to encourage people to support development in their local area by providing direct financial incentives that can be spent on local priorities. The CIL Regulations (amendment) 2013 sets out that Local Authorities must allocate 15% of levy receipts on priorities that should be agreed with the local communities in which the levy was raised.
The 'meaningful proportion' must be spent on schemes that will help support the development of the neighbourhood area by funding either:
- the provision, improvement, replacement, operation or maintenance of infrastructure;
- anything else that is concerned with addressing the demands of infrastructure; or
- anything else that is concerned with addressing the demands that development places on an area.
The Council's Neighbourhood structure is an appropriate way to divide and spend the 'meaningful proportion' of CIL. The amount of Neighbourhood CIL available in each Neighbourhood is based on the amount of development in each Neighbourhood area. CIL will be an ongoing revenue stream linked to development as and when it comes forward, and the amounts available in each Neighbourhood will vary over time.
Selection criteria for projects:
- Anyone can submit a Neighbourhood Community Infrastructure Levy idea
- Projects may be delivered by community organisations, council officers, or third party organisations
- External groups and organisations must be registered with a Regulatory Body (e.g. Charities Commission and/or Companies House)
All projects must:
- meet the terms of the CIL Regulations (2010)
- reflect the priorities of the Council and Neighbourhood
- have community backing (including any adopted Neighbourhood Plan)
- support, or mitigate the impact of development in an area
- be a one-off project (or identify and agree longer-term revenue implications)
- benefit the broadest section of the community
- provide value for money
Communities should be aware that funds will be accessible only once and projects should not have ongoing running costs for the council unless this has been agreed in writing by the Council's relevant Director. Communities are encouraged to support project maintenance and to seek additional forms of funding, e.g. through crowdfunding to match the amount.
Expression of Interest Form
Click here to access the form.