CIL Income in Unparished Areas
In our previous blog, we talked about one of the benefits of neighbourhood planning: identifying infrastructure priorities, and accessing 25% of the revenues from the Community Infrastructure Levy (CIL) raised within the neighbourhood area where a CIL Charging Schedule and a ‘made’ neighbourhood plan are in place.
In unparished areas, income from CIL works a bit differently.
In the absence of a town or parish council, communities can still benefit from the neighbourhood portion of CIL. The CIL Guidance states that “…If there is no parish or town council, the charging authority will retain the levy receipts but should engage with the communities where development has taken place and agree with them how best to spend the neighbourhood funding…”.
In unparished areas without a ‘made’ neighbourhood plan, 15% of CIL income, capped at £100 per dwelling is retained by the charging authority as Neighbourhood CIL. Designated Neighbourhood Areas with a ‘made’ neighbourhood plan are eligible for 25% of CIL income, uncapped. This income is retained by the Collecting Authority unless the Neighbourhood Area is covered by a statutory power to spend CIL funds. Overall, there are clear benefits in producing a neighbourhood plan for unparished areas with CIL in place.
What NCIL can Fund
Neighbourhood CIL (NCIL) can be used to support the development of the relevant area and should contribute towards the provision, improvement, replacement, operation or maintenance of infrastructure, or anything else concerned with addressing the demands placed by development.
The charging authority is responsible for engaging with communities to determine the best use of neighbourhood funding. Charging authorities should outline their approach to engaging with neighbourhoods through regular communication tools such as websites and newsletters. The use of neighbourhood funds should therefore match priorities expressed by local communities.
CIL income in unparished areas can be used to meet local infrastructure needs and address community priorities. By working with local communities, councils can identify infrastructure projects to allocate NCIL funds, thereby supporting the development and sustainability of their areas. The creation of neighbourhood plans can provide greater benefit to unparished areas with access to increased neighbourhood funding. The spending of neighbourhood CIL must also meet the requirements of the Subsidy Control Act, which we explore in this blog.
Developing NCIL Governance and Spending Processes: Key Factors to Consider
The CIL Guidance does not prescribe how CIL Charging Authorities develop governance and spending arrangements for neighbourhood CIL in unparished areas. This allows for a great deal of flexibility in how these arrangements are developed. As a result, there is huge variety across the country which represents the diversity of communities. However, it does mean that developing governance and spending arrangements can often feel like a complex and difficult task.
We have reviewed governance and spending approaches for Neighbourhood CIL in unparished areas within the South East of England, and identified six constant governance themes. Under each theme sit a range of approach options that differ according to local contexts and preferences. We have summarised the themes below and listed some of the approaches taken by local authorities. These approaches can be replicated and developed by any CIL Charging Authority, or used as a starting point for governance and spending.
Defining a Neighbourhood Area
A ward is defined as the neighbourhood area for CIL spend.
Ward groupings represent a neighbourhood area.
The entire authority area represents the neighbourhood area.
Setting timescales for Neighbourhood Bidding
Developing Governance Structures
Engaging with the Community
Capping CIL Bids
Determining Criteria for assessing NCIL Bids
How we can help
DAC Planning provides specialist neighbourhood planning support for local communities and on behalf of local authorities. We can provide support in preparing infrastructure plans and advise on CIL monitoring and templates. We also support local authorities in producing and implementing the Community Infrastructure Levy.
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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