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Community Infrastructure Levy

The Community Infrastructure Levy (CIL) is a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their area. The CIL is a charge that can be levied by councils on new developments, based on the size and type of the development. It is primarily intended to provide funds for infrastructure that is necessary to support development.

Historical Context

The concept of the Community Infrastructure Levy was introduced as part of the Planning Act 2008, with further details and regulations implemented through the Localism Act 2011. The CIL allows councils to raise funds from developers, which can then be used to support a wide range of infrastructure projects, such as roads, schools, parks, and health facilities.

In October 2008, the Government of the United Kingdom announced proposals for the CIL to standardize how the financial burden of new developments is shared and to replace the negotiated system of planning obligations, known as "Section 106 agreements."

Implementation and Impact

Councils that wish to charge CIL must develop a charging schedule that is tested and approved by an independent examiner. The charge rates set out in the schedule are based on the economic viability of development within the area. Since its adoption, the CIL has been used in various regions to fund significant projects, such as the Crossrail projects in London, where the TfL Mayoral Community Infrastructure Levy has been applied to support the development of the transport infrastructure.

One notable instance of the CIL's application is in the London Borough of Tower Hamlets, where the CIL Charging Schedule was first adopted on April 1, 2015. The schedule has been revised periodically to ensure adequate funding for infrastructure to accommodate local growth.

Recent Developments

The Levelling-up and Regeneration Act 2023 introduced changes to the existing CIL, reflecting ongoing reforms to how infrastructure funding is managed and allocated at the local level. These reforms aim to make the process more transparent and effective in meeting the needs of growing communities.

Furthermore, the role of the CIL in major projects has been highlighted in instances of public discourse. For example, Margaret Mullane campaigned against imposing the CIL on residents rebuilding homes after a wildfire in Wennington, showcasing the complexities and challenges of applying the levy universally.

Related Topics

The Community Infrastructure Levy remains a pivotal mechanism in facilitating the sustainable growth of communities by ensuring that necessary infrastructure is funded and delivered effectively.