Community Infrastructure Levy

The Community Infrastructure Levy (CIL) is a charge on new development to help pay for supporting infrastructure (e.g. transport or public realm improvements).

On 1 April 2012, the Mayor of London introduced a Mayoral Community Infrastructure Levy (CIL) to help fund Crossrail.

A Community Infrastructure Levy for Lambeth

The CIL is a new levy that local authorities can choose to charge on new developments in their area. The money can be used to support development and growth by funding infrastructure that the council, local community and neighbourhoods want.

Lambeth is intending to become a CIL charging authority under the Planning Act 2008 and Community Infrastructure Regulations 2010. In order to do so, Lambeth must produce and consult on a charging schedule which sets out the rate(s) to be applied to new development in the borough. These rates need to be supported by:

• an adopted development plan (the Local Development Framework core Strategy in Lambeth's case)
• an assessment of area infrastructure requirements and funding gap analysis
• an assessment of the economic viability of new development.

The benefits of CIL are:

• increased certainty for the funding and delivery of infrastructure projects
• increased certainty for developers regarding what they will need to contribute
• increased transparency for local people.

Consultation on the Lambeth CIL

We are required to consult on the preliminary draft charging schedule and then the draft charging schedule, before submitting the draft for an examination in public by an independent inspector.

The preliminary consultation is taking place between 28 September and 9 November 2012.

The Preliminary Draft Charging Schedule sets out the proposed levy rates (£s per square metre) and charging zones in the borough.

We have prepared a CIL summary booklet that sets out what we are consulting on at this stage.

There are a number of ways that you can comment at this stage and all responses received up to 5pm on Friday 9 November will be considered.

• Email your response to lambethCILconsultation@lambeth.gov.uk
• Written response to CIL Consultation, Planning Regeneration and Enterprise, Lambeth Council, 1st floor Phoenix House, 10 Wandsworth Road, London SW8 2LL

If you have any queries about the adoption of CIL and the consultation, please contact Clive Fraser - cfraser@lambeth.gov.uk

Future consultation

The second stage of consultation is likely to take place early in 2013. This will incorporate and address issues raised in the earlier consultation. It is also likely to address:

• A revised and reduced S 106 planning obligations SPD, as set under the CIL regulations S 106 tariffs used for pooling contributions towards infrastructure will be replaced by CIL. However, S 106 planning obligations will continue to secure affordable housing, as well as site specific and local mitigation measures.
• Application of a 'meaningful proportion' of CIL receipts to expenditure within the local neighbourhoods in which development takes place. This will be informed by government guidance to be published later in 2012.

The Mayor’s Community Infrastructure Levy

On 1 April 2012, the Mayor of London is introducing a Community Infrastructure Levy (CIL) to help pay for Crossrail. In Lambeth, this will be a flat charge of £35 per square metre of net increase in floorspace. Lambeth will collect the charge on behalf of the Mayor.

The Mayor's CIL is in addition to Lambeth's own requirements for Section 106 contributions - as set out in the Lambeth Section 106 Planning Obligations Supplementary Planning Document.

How much will it cost?

The rate of the Mayor's CIL varies across London, but the Mayor has set the charge in Lambeth at £35 per square metre of net increase in floorspace. This is a flat rate across the borough and the same rate applies to all types of development.

The Mayor's CIL is not negotiable. In virtually all cases the CIL liability will be calculated when planning permission is granted. The charge will be adjusted annually for inflation.

Does it apply to all development?

The Community Infrastructure Levy (CIL) applies to the net increase in gross internal floor area after allowing for any demolition.

If the gross internal floor area of a new build is less than 100 square metres then it will not be liable for CIL, regardless of any demolition. However, if a new dwelling is being created it will always be liable for a CIL charge on any net increase in gross internal floor area.

Applications for change of use, conversion or subdivision of a building will not be liable for CIL, provided there is no increase in floorspace through a proposed extension.

When is the charge being introduced?

The Mayor’s Community Infrastructure Levy (CIL) will be applied to any relevant development that receives planning permission from 1 April 2012 onwards. This includes:

• Cases where a planning application was submitted before 1 April 2012, but not approved by then.
• Cases where Lambeth has made a resolution to grant planning permission before 1 April 2012 but has not formally granted planning permission until after that date (to allow a s.106 agreement to be signed, for example)
• Cases where a planning appeal is decided after 1 April 2012, regardless when the appeal was made.

Are there any exemptions?

There are only three types of buildings that do not pay CIL:

1. Buildings into which people don’t normally go, or only go into to perform maintenance. This covers things like water pump houses or electrical substations.
2. Social housing – and a claim for social housing relief is made and accepted before development commences.
3. Development by charities for charitable purposes – and a claim for charitable relief is made and accepted before development commences.
4. Development for the provision of medical or health services, or for education as a school or college, will not need to pay the Mayor’s CIL (the Mayor has set a zero rate for these uses).

How will the charge be made?

As the local planning authority, Lambeth must assess which developments are liable to pay the Mayor’s Community Infrastructure Levy (CIL) and then collect the amount due. Lambeth must pass this money on to Transport for London. The Council can retain up to 4% to cover administration costs.

The process:

1. Everyone making a planning application must complete an Additional Information Requirement form to enable authorities to calculate levy liability. The completed form should be submitted alongside the planning application form. If this information is not included, the planning application will be invalid.
2. If CIL applies, the Council will calculate the amount and show the amount on a Liability Notice issued along with the Planning Decision Notice.
3. Before development commences the person who will pay CIL must serve an Assumption of Liability Notice on the Council. This will normally be either the landowner or the developer.
4. The developer must serve a Commencement Notice on the Council once construction begins.
5. Once the Council receives the Commencement Notice (or becomes aware that development has started), the Council will serve a Demand Notice for the full amount of CIL.
6. If the Council does not receive a Commencement Notice and the development starts, the CIL is payable immediately and penalties will be applied.