Agenda item
Community Infrastructure Levy (CIL) - Impact on Development
The Panel will receive a presentation on this item from the Policy & Environment Manager.
Minutes:
The Planning Officer gave a presentation to the Panel in relation to this item, a summary is set out below.
What is CIL?
v A levy on new development to contribute towards the infrastructure BANES needs to support the development – a fixed-rate “tax” system (£/m2)
v CIL applies to development
• comprising 100 m2 or more
• resulting in the creation additional dwellings
v Based on net increase – existing floorspace maybe deducted from the final liability
v CIL does not apply to affordable housing and charitable development
v CIL largely replaces the strategic elements of s106 Planning Obligations
What should CIL pay for?
Only spend on providing infrastructure to support new development (Reg.123 list) - not to fill a current deficiency
Ø Infrastructure includes
ü Open space
ü Recreation and sport
ü Roads and transport facilities
ü Education and health facilities and etc...
Local infrastructure (a meaningful proportion to local communities)
B&NES CIL Timetable
Commence / Evidence gathering – July 2011
1st Consultation – Public consultation on Preliminary Draft Charging Schedule: 18th April – 8th June 2012
2nd Consultation - Public consultation on Draft Charging Schedule – Autumn 2012
Submission – January 2013
Hearings – May 2013
Adoption – September 2013
Evidence base - Setting CIL charges
1. Demonstrate an infrastructure funding gap
v need to fund infrastructure and show existing funding stream: B&NES Infrastructure Delivery Programme
2. Based on viability of development
v The Viability Assessment prepared by BNP Paribas
Charging Authorities must “aim to strike what appears to be an appropriate balance between the impact on economic viability and meeting the infrastructure funding gap”.
CIL rates agreed by the Cabinet – Residential development
Residential Zone A (Bath Centre, Bath North and East, Chew Valley West, Bath North/ West/ South, Chew Valley East, Keynsham and Norton Radstock): £100 m2
Residential Zone B (Bath Rural / Bathavon): £200 m2
e.g. One 3 bed room house: 100 m2 x £100 = £10,000
Councillor Steve Hedges thanked the officer for her presentation but commented that he found it to be quite a complicated process.
The Planning Officer acknowledged that it would take time for people to understand the differences in the process.
The Divisional Director for Planning and Transport added that he felt it was a much simpler process for the developers to understand and should act as a benefit to the Council as it will show with a high degree of certainty what the Council expects.
Councillor Les Kew commented that taxation should really be on the landowner. He asked if a new house was to be built that required no additional infrastructure, would CIL still apply.
The Planning Officer replied that a CIL charge would still apply. She added that the income would be placed into a central Council pot.
Councillor Les Kew stated that the thought of an additional £10,000 on a new home scared him.
The Divisional Director for Planning and Transport replied that this figure was very similar in broad terms to Section 106. He added that he had seen a figure of £15,000 per household on some previous Section 106 agreements and that the real issue is that the costs should be passed down to the landowner.
Councillor Brian Simmons asked with regard to Regulation 123, what % of CIL income will go back into the relevant Council services.
The Planning Officer replied that the Council would make a decision on that in due course.
Councillor June Player asked why the CIL was being introduced.
The Divisional Director for Planning and Transport replied that the Government had assessed this matter for some time as to whether an alternative to Section 106 could be found. He added that the CIL will be the mechanism for providing infrastructure to new developments and although the Council does not have to implement it, he believed they would miss a great opportunity if they did not.
Councillor June Player asked how much CIL would cost to implement.
The Divisional Director for Planning and Transport replied that whilst there had of course been officer time, departmental resources and the use of some consultants as part of the process the outcome with regard to cost v return was very simple. The returns will be far greater. He added that the CIL regulations also permits authorities to use CIL receipts to finance administrative expenses in connection with CIL, this includes the costs of setting up and running a CIL.
Councillor Will Sandry asked if the CIL applied to any Council development.
The Planning Officer replied any development proposed by the Council is still subject to CIL accordingly. Only affordable housing and charitable development are exempt from the levy.
Councillor Will Sandry suggested that a lower figure should be applied to the Charging Schedule with regard to Student Accommodation on campus to encourage further development as the Council were looking to reduce the number of HMO’s.
The Planning Officer replied that the currently proposed rates are £60 m2 for on Campus and £100 m2 for off campus as recommended by the consultants BNP Paribas. She added that they had undertaken financial viability testing on various rent levels.
The Chair commented that she had attended a number of events relating to this matter and found the presentation to be very informative.