To report the Executive’s response and action plan in respect of the report of the Task and Finish Group on Community Infrastructure Levy.

This item reported the Executive’s response to the second phase report of the Task and Finish Group on Community Infrastructure Levy (CIL); minute 17 of the 16 July 2013 Committee refers.

The Assistant Director updated the Committee on the government’s proposed reforms to CIL arising from practice experience in pathfinder authorities and a consultation that had been undertaken in April and May 2013.  The government response was published at the end of October 2013 as ‘Community Infrastructure Levy: Consultation on further Regulatory Reforms’.  It was expected that, subject to Parliamentary process, the new regulations would come into effect by the end of January 2014.  The main proposals included:

1.       In view of the changes required, local authorities would be given an extra year to continue the current policy of pooling Section 106 obligations into broader schemes (until April 2015); this was supported by 89% of respondents.

2.       Authorities would be required to strike an appropriate balance between the desirability of fund infrastructure from the levy and the potential effects of the levy on the economic viability of development across the area; supported by 86%.

3.       Authorities would be allowed to set differential rates by reference to both the intended use and the scale of development, e.g. retail development; supported by 86%.

4.       The government would require the Regulation 123 list, setting out the types of infrastructure that may be funded by CIL, to be available during the rate setting process, including at the examination; supported by 83%.

5.       Authorities would be given the flexibility to extend social housing relief to include affordable rent and discounted housing market homes; supported by 75%.

6.       As discussed at Task and Finish Group meetings, relief for self-build homes for individuals was proposed.  This was only supported by 39% of respondents but the government was intending to proceed with this, subject to a rigorous two-stage vetting process.

The Assistant Director commented that, with some of the uncertainties cleared up, this would set the scene for the next phase of work on CIL.  The Council was about to re-engage its retained consultants, to include input from the reinstated Task and Finish Group, to identify precisely the basis for their work and to capture the accepted recommendations from the group’s second phase report.  It was anticipated that the next phases of consultation would commence in the new calendar year.

The Assistant Director responded to a number of questions from the Chairman, Vice-Chairman (also Chairman of the Task and Finish Group), and other Members.   The principal points included:

a.       The ‘Community Infrastructure Levy (Amendment) Regulations 2013’ required the charging authority to pass 15 per cent of the relevant CIL receipts to the parish council for that area.  For development within an area that had a neighbourhood plan in place the authority must pass 25 per cent to the parish council for that area. 

b.       It was confirmed that the legislation permitted setting a zero CIL rate in some zones, e.g. Leominster greenfield urban extension.

c.       It was the  ...  view the full minutes text for item 37