Developers may be required to pay a Community Infrastructure Levy when undertaking building projects in their area.
Community Infrastructure Levy (“CIL”) was introduced by regulations which came into force on 6 April 2010. Local authorities in England and Wales have the right to charge CIL but are not required to do so.
CIL is charged on new buildings for which planning permission is obtained and the creation of additional space within existing buildings. The money raised can be used to fund a wide range of infrastructure that is needed as a result of development. This includes new or safer road schemes, flood defences, schools, hospitals and other health and social care facilities, park improvements, green spaces and leisure centres.
The regulations state that the levy may not be used to provide affordable housing. Requirements for affordable housing will continue to be dealt with through planning conditions and section 106 agreements.
Communities will benefit from development projects, because authorities which CIL are required to allocate a proportion of the revenue which they raise to the neighbourhood in which the levy is raised.