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Improving local areas through developer funding

Status: Closed Opened: 6 May 2025 Closed: 15 Dec 2025 14 recommendations 16 conclusions 1 report

The Ministry of Housing, Communities & Local Government (MHCLG) has overall policy responsibility for planning in England, while frontline decisions are made by Local Planning Authorities (LPAs). When a development is due to take place, developers make financial contributions to the LPA as part of the process of granting planning permission. These contributions go towards …

Clear

Reports

1 report
Title HC No. Published Items Response
46th Report - Improving local areas through developer fundi… HC 886 17 Oct 2025 30 Responded

Recommendations & Conclusions

3 items
3 Conclusion 46th Report - Improving local areas thr… Acknowledged

Identify viable local planning authorities for CIL and encourage wider adoption of the levy.

There are additional local planning authorities for whom starting to operate the Community Infrastructure Levy would be both feasible and beneficial. In November 2024, only 52% of all LPAs were operating the CIL. The CIL was intended to make getting contributions from developers fairer, faster, and more certain and transparent. …

Government response. The government agrees and states it will continue ongoing work with the Planning Advisory Service (PAS) to consider how to support local authorities in making best use of tools like the Community Infrastructure Levy (CIL). It expects more areas to …
HM Treasury
1 Conclusion 46th Report - Improving local areas thr… Acknowledged

Committee took evidence on improving local areas through developer funding.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Housing, Communities and Local Government (the Department) on improving local areas in England through developer funding.1

Government response. The government agrees (with an unstated recommendation) and will explore proportionate and efficient ways of collecting and analysing data from Infrastructure Funding Statements (IFSs) to improve understanding of developer contributions. It also reminded Local Planning Authorities of their statutory duty …
HM Treasury
15 Conclusion 46th Report - Improving local areas thr… Acknowledged

Financial viability and past policy uncertainty hinder wider adoption of Community Infrastructure Levy

Given that it can provide benefits for the local community, we asked the Department why more authorities were not operating the CIL, as only 52% of local authorities operate them. The Department explained that 16 Q 30 17 Q 31; C&AG’s Report, para 1.13 and Figure 4 18 C&AG’s Report, …

Government response. The government agrees with the committee's recommendation that more local authorities should operate the CIL and supports LPA capacity through the PAS and funding, and will work with PAS to support local authorities in using CIL effectively and implementing planning …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
30 Jun 2025 Dame Sarah Healey DCB CVO · Ministry of Housing, Communities and Local Government, Joanna Key · Department for Levelling Up, Housing and Communities, William Burgon · Ministry of Housing, Communities and Local Government View ↗

Correspondence

2 letters
DateDirectionTitle
13 Nov 2025 To cttee Letter from the Permanent Secretary of the Department for Education relating to…
14 Jul 2025 To cttee Letter from the Permanent Secretary of the Ministry of Housing, Communities and…