Select committee: Public Accounts Committee

Conclusion 3

46th Report - Improving local areas through developer funding Published 17 Oct 2025 Addressed to HM Treasury
Conclusion (the committee's words)
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.

From: Public Accounts Committee, 46th Report - Improving local areas through developer funding (HC 886), 17 October 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Forty-sixth Report of Session 2024-26

The government responded to the whole report on 4 June 2026 (deadline 17 December 2025).

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Treasury minutes: Government response to the Committee of Public Accounts on the Forty-sixth report from Session 2024-26

Published 19 January 2026.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government states that it agrees with each of the Committee's recommendations on developer contributions, with target implementation dates ranging from spring 2026 to autumn 2026 and some marked 'Recommendation implemented'.

  • On infrastructure funding statements, the department "will therefore explore proportionate and efficient ways of collecting and analysing data from IFSs", with a target date of autumn 2026.
  • On local plans, it says it is "committed to taking tough action" and has made clear its "willingness to make full use of available intervention powers", with intervention considered "on a case-by-case basis".
  • On viability guidance, it "will be consulting on a revised National Planning Policy Framework before the end of this year" and "intends to publish" updated viability practice guidance alongside it, with a target date of summer 2026.
  • On unsold Section 106 homes, it is progressing "a holistic policy package, to be confirmed shortly", with a target date of spring 2026.

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