Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Acknowledged
Financial viability and past policy uncertainty hinder wider adoption of Community Infrastructure Levy
Conclusion
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, para 1.14 19 Qq 30–32 20 C&AG’s Report, para 1.7 and Figures 1 and 2 10 the CIL is not always an appropriate instrument for LPAs to use, largely because of financial viability issues and the potential for it to disincentivise development in their areas. It also reflected that some LPAs may have paused their plans to introduce the CIL while the previous government considered whether to introduce a new mandatory infrastructure levy. The Department said that, since all authorities now understood that the new levy was not going ahead, more might decide to use the CIL.21
Government Response Summary
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 reforms.
Government Response
Acknowledged
HM Government
Acknowledged
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2026 3.2 The Community Infrastructure Levy (CIL) is a discretionary levy, which LPAs may 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. 3.3 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.