Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Acknowledged
Identify viable local planning authorities for CIL and encourage wider adoption of the levy.
Conclusion
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. Payment by developers is generally up-front and non-negotiable, and LPAs may spend the monies on infrastructure across the local area, rather than being limited to a specific site. However, the CIL has some limitations, including being resource-intensive and time-consuming to set up, creating a barrier to introduction, and it cannot be used to part fund social housing. There is also often less take-up in areas with lower land value. The Department explains that some LPAs may have delayed introducing the CIL because they were waiting to see the outcome of plans to introduce the previously proposed new infrastructure levy, which would have largely replaced the current system. However, the Department accepts that it would potentially be useful to identify LPAs where CIL ought to be viable but where there are other reasons why it has not been introduced. recommendation The Department should work more proactively with the Planning Advisory Service, to identify LPAs where CIL ought to be viable and encourage wider take-up of the CIL where this is appropriate.
Government Response Summary
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 consider CIL adoption following the English Devolution and Community Empowerment Bill, which empowers Mayoral Strategic Authorities to raise a Mayoral CIL.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the Committee’s recommendation. choose to adopt based on a range of local factors. This includes giving consideration to ensuring various forms of development remain viable in local areas, where economic factors will differ across different localities. Over half of LPAs already have a CIL in place, and the department expects that more areas will consider adopting CIL following Royal Assent to the English Devolution and Community Empowerment Bill. This Bill will give all Mayoral Strategic Authorities the power to raise a Mayoral CIL, subject to having a Spatial Development Strategy in place. The department supports LPA capacity and capability through the PAS and through the provision of funding, including providing direct support for administration of local development contributions processes. The department will continue ongoing work with PAS to consider ways in which it can support local authorities make best use of the tools available to them, including CIL, and to support the implementation of the government’s planning reforms.