Devolution – What About the Community Infrastructure Levy (CIL)?
The English Devolution White Paper was published on 16 December 2024, outlining the government’s approach to accelerate the transfer of funds and powers to the regions. For more information, see the Local Government Association’s helpful FAQ document.
Since the publication of the White Paper, the Government’s proposals are being realised at a rapid pace. In particular, the Deputy Prime Minister announced the six areas to join the Devolution Priority Programme on 5 February 2025.
This DAC Planning blog looks at just one of the many process that will be impacted by local government reorganisation: the Community Infrastructure Levy (CIL) in two-tier authorities. Here we aim to:
Understand how CIL in two-tier authorities currently works.
Explore the pros and cons of CIL from a County Council perspective.
Share lessons learnt from a County Council case study.
Look at tools to future-proof CIL processes now, in readiness for local government reorganisation.
How does CIL work in two-tier authorities?
CIL is charged by the district/borough council and collected by those authorities. But, CIL can be spent on infrastructure to support growth: including infrastructure delivered by county councils. The diagram illustrates that in some cases there can be barriers to the flow of CIL receipts between the two authority tiers to achieve shared infrastructure delivery objectives.
Do County Councils need CIL?
County Councils deliver ‘big ticket’, multi-million pound infrastructure projects. These projects, where identified through Local Plans and Infrastructure Delivery Plans (IDP), are directly related to development and can be funded through Section 106 planning obligations [1] (S.106) where compliant with Regulation 122 of the CIL Regulations 2010 (as amended).
There are many reasons why county councils may dis-engage from CIL:
Lack of control over CIL income;
Perceived impact upon S.106 negotiations;
Slow accumulation of CIL receipts resulting in funding delays;
Results in a ‘take’ on resources to prepare CIL bids and to draw down funding in-line with project timescales.
Nevertheless, there is growing recognition of CIL as an important funding stream.
Match funding opportunities.
Ability to fund cross-boundary projects, where evidence supports the case;
No time-limit on spend.
CIL is charged on developments of one new dwelling or more. There is greater opportunity to capture value when compared to S.106 which mainly apply to major applications.
CIL governance processes are implemented to agree spending plans. This process improves the transparency and effectiveness of developer contributions.
[1] Section 106 of the Town and Country Planning Act 1990.
Taking a Proactive Approach to CIL: A County Council Perspective
Essex County Council (ECC) recognises these benefits of CIL, and since 2022, DAC Planning has been working with the Council to increase the coverage of Charging Authorities in the county. We have done this by supporting authorities with three key workstreams:
Preparation of CIL Charging Schedules from drafting materials through to Examination
Implementation of CIL charging processes
CIL Governance
The map below, illustrates the increase in CIL coverage in Essex since 2022.
The benefits of investing in this long-term project are being realised by ECC through improved communication across authority tiers and a growing awareness of infrastructure spend and project prioritisation.
However, the work does not stop once CIL comes into effect. Indeed, for the benefits of increasing CIL coverage to be realised, there are a number of actions that we recommend:
CIL Training for all Infrastructure Providers and Spending Managers:
What is CIL and how can it be used?
Understanding the CIL bidding process and how to take part.
Think “CIL” when responding to Local Plan and Charging Schedule evidence base.
CIL and infrastructure funding processes should be a priority when responding to Local Plan and CIL consultation and engagement events.
At the earliest stage, implement joint-working across the tiers to develop robust and legally compliant infrastructure funding and delivery policies and programmes.
Communication and joint working
Invest in communication across the tiers of local government to ensure the effective flow of CIL from the Charging Authority to county and neighbourhood levels.
Identify opportunities for joint funding to maximise CIL receipts.
Standardisation where possible: governance, prioritisation, spend.
County councils must interact with numerous CIL Charging Schedules simultaneously. In most cases, each Charging Authority will have different governance, prioritisation and spending methods which must be resourced. Standardisation of these processes across a county area, where possible will result in a more streamlined and efficient system.
Are These Recommendations Relevant in the Context of Local Government Reorganisation?
At DAC Planning, we firmly believe in the benefits of CIL as a form of developer contribution. Through our work, we recognise the value of implementing CIL in two-tier authorities. We advocate that the true potential of CIL can be realised through training, joint-working and county-wide standardisation where possible.
By implementing our recommendations within a county area now, we believe that it will be possible to futureproof the benefits of CIL. This can only ease the transition from two-tier authorities to combined authorities in the future.
How we can help
DAC Planning has extensive experience and understanding of plan making, and provides dedicated support to local authorities nationally.
For a discussion on how we can assist you, please get in touch with the team:
admin@dacplanning.com / 01206 259281
This information is for general informative purposes only. Whilst every effort has been made to ensure its accuracy, DAC Planning accepts no liability whatsoever for any direct or consequential loss arising from its use.
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