DCLG consults on series of changes to Community Infrastructure Levy

The Government is to consult on a string of changes to the Community Infrastructure Levy in a bid to make it “fairer, faster, more certain and more transparent”.

The proposals include requiring a charging authority to demonstrate that it has struck an appropriate balance between the desirability of funding infrastructure from the levy and the potential effects of the levy on economic viability of development across its area.

The transition period for further limitations on the use of pooled planning obligations will also be extended from April 2014 to April 2015 to allow charging authorities more time to take into account the reforms the Government has already introduced and those proposed in the consultation.

Other proposals include:

  • Amending the provisions on setting differential rates;
  • Extending the consultation period on the draft charging schedule;
  • The role of the list of infrastructure and procedures for reviewing it;
  • Amending the relationship between the levy and section 278 agreements;
  • Allowing charging authorities the choice to accept payments in kind through provision of both land and infrastructure either on-site or off-site for the whole or part of the levy payable on a development;
  • Extending the provisions for phasing of levy payments to all types of planning permission to deal fairly with more complex developments;
  • Allowing existing floorspace to be credited against the levy liability provided the use has not been abandoned;
  • Ensuring multiple liability provisions work effectively so that new applications that bring forward changes but do not increase floorspace on permitted, but not completed, schemes will not trigger an additional liability;
  • Giving charging authorities the discretion to apply social housing relief to discounted market sales in their areas and ensuring that ancillary and communal areas are reflected;
  • Making it easier to apply exceptional circumstances relief provisions;
  • Introducing relief from the levy for self-build homes;
  • Modifying the appeals procedures and allowing appeals in certain cases after development has commenced; and
  • Introducing transitional measures so that changes related to the charge setting process should not apply to authorities which have already published a draft charging schedule.

The Department for Communities and Local Government is also proposing to clarify regulations 122 and 123 of the Community Infrastructure Levy Regulations 2010 in a bid to clear up confusion over certain phrases they contain.

A copy of the consultation paper can be viewed here. The consultation will run for six weeks, with a closing date of 28 May 2013.

Planning Minister Nick Boles insisted that the changes would boost self-build housing in particular.

He said: “For too long, self-build homes have been seen as an option for only a privileged few and we are determined to change that with proposals that have the potential to save self-builders thousands of pounds.

“Our proposals would ensure that self-build homes are exempt from this levy and will make an enormous difference to people looking to realise their dream of buying a plot of land and getting a builder to build them a home.”