Presentation to planning professionals January 2010 of the new provisions concerning the Community Infrastructure Regulations 2010 and general provisions

1. Community Infrastructure
Levy:
an introduction
Graham Gover Solicitor

2. Source material

3. Source material

4. Source material

5. Source material

6. Source material

7. Material still to come
Localism Act
• see Part 5 Chapter 2 of the Bill
More Regulations
Development Management PPS
• Annex to replace Circular 5/05

8. Material still to come
Localism Act
• see Part 5 Chapter 2 of the Bill
More Regulations
National Planning Policy Framework

9. Why is it needed?

10. Why is it needed?
Problems with s106 obligations:

11. Why is it needed?
Problems with s106 obligations:
• do not provide for incremental effects
of development

12. Why is it needed?
Problems with s106 obligations:
• do not provide for incremental effects
of development
• major developments bear costs
disproportionately

13. Why is it needed?
Problems with s106 obligations:
• do not provide for incremental effects
of development
• major developments bear costs
disproportionately
• only 6% of planning permissions
make any financial contribution

14. Why is it needed?

15. Why is it needed?
• inconsistency between LPAs

16. Why is it needed?
• inconsistency between LPAs
• can lead to the notion that
permissions are bought and sold

17. Why is it needed?
• inconsistency between LPAs
• can lead to the notion that
permissions are bought and sold
• s106s are often negotiated, leading to
delay and legal costs

18. Why is it needed?
• inconsistency between LPAs
• can lead to the notion that
permissions are bought and sold
• s106s are often negotiated, leading to
delay and legal costs
• lack of accountability of how the
money is spent

19. What is infrastructure?
Includes:
• roads and other transport facilities
• flood defences
• schools and other educational facilities
• sporting and recreational facilities
• open spaces
• affordable housing

20. What is infrastructure?
Includes:
• roads and other transport facilities
• flood defences
• schools and other educational facilities
• sporting and recreational facilities
• open spaces
• affordable housing

21. What is infrastructure?
Includes:
• roads and other transport facilities
• flood defences
• schools and other educational facilities
• sporting and recreational facilities
• open spaces

22. What is CIL liable development?

23. What is CIL liable development?
Generally: buildings permitted through
some form of planning permission,
except

24. What is CIL liable development?
Generally: buildings permitted through
some form of planning permission,
except
• a building into which people do not
normally go

25. What is CIL liable development?
Generally: buildings permitted through
some form of planning permission,
except
• a building into which people do not
normally go
• or go intermittently, for inspecting or
maintaining fixed plant or machinery

26. Setting the charge 1

27. Setting the charge 1
• Produce a charging schedule: a new
DPD within the LDF

28. Setting the charge 1
• Produce a charging schedule: a new
DPD within the LDF
• Based on the infrastructure planning
evidence drawn for development
strategy

29. Setting the charge 1
• Produce a charging schedule: a new
DPD within the LDF
• Based on the infrastructure planning
evidence drawn for development
strategy
• Strike a balance between raising funds
and effect on economic viability

30. Setting the charge 2

31. Setting the charge 2
• Identify other sources of funding

32. Setting the charge 2
• Identify other sources of funding
• Identify indicative infrastructure
projects or types

33. Setting the charge 2
• Identify other sources of funding
• Identify indicative infrastructure
projects or types
• The shortfall = rate of CIL

34. Setting the charge 2
• Identify other sources of funding
• Identify indicative infrastructure
projects or types
• The shortfall = rate of CIL
• Can apply differential rates to

35. Setting the charge 2
• Identify other sources of funding
• Identify indicative infrastructure
projects or types
• The shortfall = rate of CIL
• Can apply differential rates to
- different zones

36. Setting the charge 2
• Identify other sources of funding
• Identify indicative infrastructure
projects or types
• The shortfall = rate of CIL
• Can apply differential rates to
- different zones
- intended use of development

37. Setting the charge 3

38. Setting the charge 3
Public consultation and examination

39. Setting the charge 3
Public consultation and examination
• Consultation with communities

40. Setting the charge 3
Public consultation and examination
• Consultation with communities
• Publish for four + weeks prior to...

41. Setting the charge 3
Public consultation and examination
• Consultation with communities
• Publish for four + weeks prior to...
• Examination in public

42. The chargeable amount
R x A x Ip
Ic

43. The chargeable amount
R x A x Ip
Ic
Where:

44. The chargeable amount
R x A x Ip
Ic
Where:
A = the deemed net area chargeable at
rate R

45. The chargeable amount
R x A x Ip
Ic
Where:
A = the deemed net area chargeable at
rate R
Ip = the index figure for the year in
which PP was granted

46. The chargeable amount
R x A x Ip
Ic
Where:
A = the deemed net area chargeable at
rate R
Ip = the index figure for the year in
which PP was granted
Ic = the index figure for the year in
which rate R took effect

47. The chargeable amount
Cr x (C - E)
C

48. The chargeable amount
Cr x (C - E)
C
To find the value of A:

49. The chargeable amount
Cr x (C - E)
C
To find the value of A:
Cr = the gross internal area of the part
of the development chargeable at rate R

50. The chargeable amount
Cr x (C - E)
C
To find the value of A:
Cr = the gross internal area of the part
of the development chargeable at rate R
C = the gross internal area of the
chargeable development

51. The chargeable amount
Cr x (C - E)
C
To find the value of A:
Cr = the gross internal area of the part
of the development chargeable at rate R
C = the gross internal area of the
chargeable development
E = an amount equal to the gross
internal areas of all builZZZZZZZZZZZZZZZ
Z Z ZZZZ ZZ

52. Or, in plain English...

53. Or, in plain English...
2
The levy is charged £/m of the net
additional increase in floorspace.

54. Or, in plain English...
2
The levy is charged £/m of the net
additional increase in floorspace.
Deduct the floorspace of any building to
be demolished

55. Or, in plain English...
2
The levy is charged £/m of the net
additional increase in floorspace.
Deduct the floorspace of any building to
be demolished
Adjustments made for changes in the
Index between date of permission and the
charging schedule taking effect

56. Various exemptions

57. Various exemptions
2
• minor development >100 m of gross
internal floorspace, or one dwelling

58. Various exemptions
2
• minor development >100 m of gross
internal floorspace, or one dwelling
• charities

59. Various exemptions
2
• minor development >100 m of gross
internal floorspace, or one dwelling
• charities
• social housing

60. Various exemptions
2
• minor development >100 m of gross
internal floorspace, or one dwelling
• charities
• social housing
• “exceptional circumstances” only if

61. Various exemptions
2
• minor development >100 m of gross
internal floorspace, or one dwelling
• charities
• social housing
• “exceptional circumstances” only if
- s106 exists

62. Various exemptions
2
• minor development >100 m of gross
internal floorspace, or one dwelling
• charities
• social housing
• “exceptional circumstances” only if
- s106 exists
- it must be more expensive than levy

63. Various exemptions
2
• minor development >100 m of gross
internal floorspace, or one dwelling
• charities
• social housing
• “exceptional circumstances” only if
- s106 exists
- it must be more expensive than levy
- adverse effect on viability

64. Property as developed under GPDO
Outbuilding (Class E)
Rear Dormer
(Class B)
Rear Extension
(Class A)
Flue
(Class G)

65. Administration

66. Administration
• prior to commencement of
development of PD, LDO etc, serve
notice of chargeable development

67. Administration
• prior to commencement of
development of PD, LDO etc, serve
notice of chargeable development
• the collecting authority serves a liability
notice + local land charge

68. Administration
• prior to commencement of
development of PD, LDO etc, serve
notice of chargeable development
• the collecting authority serves a liability
notice + local land charge
• service of a commencement notice

69. Administration
• prior to commencement of
development of PD, LDO etc, serve
notice of chargeable development
• the collecting authority serves a liability
notice + local land charge
• service of a commencement notice
• collecting authority serves a demand
notice

70. Payment
Chargeable amount Instalments
less than £10,000 60 days from commencement
£10,000 to £19,999.99 60, 120 days
£20,000 to £39,999.99 60, 120, 180 days
£40,000 or more 60, 120, 180, 240 days

71. Payment
Chargeable amount Instalments
less than £10,000 60 days from commencement
£10,000 to £19,999.99 60, 120 days
£20,000 to £39,999.99 60, 120, 180 days
£40,000 or more 60, 120, 180, 240 days

72. Payment
Chargeable amount Instalments
less than £10,000 60 days from commencement
£10,000 to £19,999.99 60, 120 days
£20,000 to £39,999.99 60, 120, 180 days
£40,000 or more 60, 120, 180, 240 days

73. Payment
Chargeable amount Instalments
less than £10,000 60 days from commencement
£10,000 to £19,999.99 60, 120 days
£20,000 to £39,999.99 60, 120, 180 days
£40,000 or more 60, 120, 180, 240 days

74. Payment
Chargeable amount Instalments
less than £10,000 60 days from commencement
£10,000 to £19,999.99 60, 120 days
£20,000 to £39,999.99 60, 120, 180 days
£40,000 or more 60, 120, 180, 240 days

75. Payment
Chargeable amount Instalments
less than £10,000 60 days from commencement
£10,000 to £19,999.99 60, 120 days
£20,000 to £39,999.99 60, 120, 180 days
£40,000 or more 60, 120, 180, 240 days
Land payment for payment in kind

76. Who is liable to pay?

77. Who is liable to pay?
• by default, the owner of the land since
that person generally benefits from
increased land values

78. Who is liable to pay?
• by default, the owner of the land since
that person generally benefits from
increased land values
• ‘material interest’: freeholder or
leaseholder with at least seven years to
run

79. Who is liable to pay?
• by default, the owner of the land since
that person generally benefits from
increased land values
• ‘material interest’: freeholder or
leaseholder with at least seven years to
run
• another person can volunteer liability

80. What if they don’t pay?

81. What if they don’t pay?
• surcharge for failing to assume liability
or serve notice, late payment

82. What if they don’t pay?
• surcharge for failing to assume liability
or serve notice, late payment
• late payment interest

83. What if they don’t pay?
• surcharge for failing to assume liability
or serve notice, late payment
• late payment interest
• CIL stop notice, enforceable by
unlimited fine and/or injunction

84. What if they don’t pay?
• surcharge for failing to assume liability
or serve notice, late payment
• late payment interest
• CIL stop notice, enforceable by
unlimited fine and/or injunction
• recovery by liability in the magistrates’
court: distress warrant, commitment to
prison

85. Applying the CIL collected

86. Applying the CIL collected
“A charging authority must apply CIL to
funding to support the development of
its area” Reg 59

87. Applying the CIL collected
“A charging authority must apply CIL to
funding to support the development of
its area” Reg 59
• may apply it outside its area

88. Applying the CIL collected
“A charging authority must apply CIL to
funding to support the development of
its area” Reg 59
• may apply it outside its area
• may pass to another person for that
person to apply to funding
infrastructure

89. Applying the CIL collected
“A charging authority must apply CIL to
funding to support the development of
its area” Reg 59
• may apply it outside its area
• may pass to another person for that
person to apply to funding
infrastructure
• localism!

90. Reporting

91. Reporting
Annual reports

92. Reporting
Annual reports
• receipts

93. Reporting
Annual reports
• receipts
• expenditure

94. Reporting
Annual reports
• receipts
• expenditure
• land payments

95. Reporting
Annual reports
• receipts
• expenditure
• land payments
st
Must appear on their website by 31
December following the report

96. The decision matrix for s106’s
1. Is any part of NO NO CHANGE
the development Circular 5/05 applies
capable of being until new policy
YES
The s106 must
meet the new
statutory test in
YES

97. Policy test para B5 Circular 5/05

98. Policy test para B5 Circular 5/05
A planning obligation must be:
(i) relevant to planning;
(ii) necessary to make the proposed development
acceptable in planning terms;
(iii) directly related to the proposed development;
(iv) fairly and reasonably related in scale and kind to
the proposed development; and
(v) reasonable in all other respects.

99. Statutory test Regulation122
A planning obligation may only constitute a reason
for granting planning permission if it is:
(i) relevant to planning;
(ii) necessary to make the proposed development
acceptable in planning terms;
(iii) directly related to the proposed development;
(iv) fairly and reasonably related in scale and kind to
the proposed development; and
(v) reasonable in all other respects.

100. The decision matrix for s106’s
The s106 must meet
the new statutory
NO
2. Is CIL operating NO Will the
in the LPA now? determination be
made after 6 April
YES
YES

101. The decision matrix for s106’s
The s106 must
NO 3. Is the proposed meet the new
s106 contribution for statutory test in
infrastructure capable
YES
YES. The s106 can
deliver the proposed
infrastructure

102. The decision matrix for s106’s
NO
4. Has the LPA set out CIL
infrastructure list on its website?
YES
NO. The s106 cannot
deliver the proposed
infrastructure

103. The decision matrix for s106’s
5. Is the obligation 6.(After 06.04.14)
duplicated by the NO Have five contributions
LPA’s CIL already been sought for
infrastructure list? the infrastructure via
YES YES NO
NO. The s106 YES. The s106 can
cannot deliver the deliver the proposed
proposed infrastructure
infrastructure contribution

104. If all that is too much, remember...
1. All planning obligations from now on must pass
the Regulation 122 test
2. LPAs cannot double-charge for CIL-funded
infrastructure using planning obligations
3. LPAs are limited to seeking five contributions per
item of CIL-funded infrastructure for items not
appearing on their website
4. No limit for non-CIL funded infrastructure items

105. Are you excited about the
prospect of being a planning
practitioner under the Coalition
Government?

106. Are you excited about the
prospect of being a planning
practitioner under the Coalition
Government?
Q &A