Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Accepted in Part
Significant unspent Community Infrastructure Levy funds exist, with potential for transport investment.
Recommendation
Just over half of local planning authorities in England charge a Community Infrastructure Levy (CIL) to fund local infrastructure for new developments.55 This levy can be used to increase the capacity of or to repair existing infrastructure, including transport, flood defences, schools, hospitals and 47 C&AG’s Report, paras 2.7-2.8 and Figure 9 48 Q 53 49 C&AG’s Report, para 2.8 50 Q 54 51 Q 53 52 Q 53 53 Q 53 54 Q 84 55 Written evidence submitted by Department for Transport 5 December 2024, ‘Local roads in England – Community Infrastructure Levy’ 15 other facilities, but the funds must be used for the purpose of supporting development rather than preserving the status quo.56 We asked the Department whether it had done any work understanding the level of unspent CIL funds across the country and whether this money could be spent on local roads.57 In its follow-up written submission, the Department acknowledged that some local authorities do have significant levels of unspent CIL funds; this may be because they have yet to allocate the money to a specific project, or because the local authority is building up funds for a major project. The Department undertook to engage closely with the Ministry of Housing, Communities and Local Government and local authorities on how CIL funds could be used to support transport investment.58 Evaluation
Government Response Summary
The government agrees, noting existing guidance already covers CIL use for infrastructure. It will explore with MHLG how Infrastructure Funding Statements can be better communicated at a community level to increase awareness of CIL and its potential spending.
Government Response
Accepted in Part
HM Government
Accepted in Part
4.4 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2025 4.5 The Community Infrastructure Levy guidance issued by the Ministry for Housing, Communities and Local Government already emphasises that Community Infrastructure Levy receipts can be spent on failing existing infrastructure, as well as on its more widely recognised use for funding the provision and maintenance of infrastructure, including transport infrastructure. 4.6 The department will explore with the Ministry for Housing, Communities and Local Government whether the availability of Infrastructure Funding Statements, which are produced annually by local authorities detailing annual Community Infrastructure Levy income and expenditure, and the levels of unspent Community Infrastructure Levy held, might be better communicated at community level to enable greater awareness of the existence of the Community Infrastructure Levy and how it might be spent, including allocations of neighbourhood Community Infrastructure Levy held by local authorities and parish councils.