CIL- a boost to infrastructure or just another obstruction?

Robert Twigg, Partner

The Department for Communities and Local Government has just published its consultation on the proposed Community Infrastructure Levy (CIL) – a new tax on developments intended to fund regional and local infrastructure.

The Government had intended to introduce a Planning Gain Supplement (PGS) which would have imposed a tax equal to a proportion of the increase in the value of land arising from the grant of planning permission. However, PGS was widely criticised by the property industry as being unworkable. Homebuilders and developers thought it would slow down development, lead to drawn out arguments about valuations and would break the link between developers, local authorities and infrastructure delivery.   

As an alternative, representatives of the industry put forward a tariff-based proposal which now forms the basis of the proposed CIL. The gist of CIL is that it allows (but doesn’t require) local planning authorities in England and Wales to set and charge developers a levy for regional and local infrastructure improvements, based on the size and character of their development.

The coalition of developers and homebuilders who came up with the proposal for CIL has put huge effort into presenting a workable scheme. Let’s hope that we soon see an increase in the volume of new development so that we have the chance to judge whether their hard work has paid off.

For more information please contact Robert Twigg.  E: r.twigg@capitallaw.co.uk T: 029 2047 4410

Blog History