Developers don’t like it, so, of course, it has to go.
“The government’s specially appointed task force is to call for a radical overhaul of the community infrastructure levy six years after it was introduced.
It will recommend a major policy U-turn, stripping CIL back to its original purpose by funding local infrastructure with a simple, national base tax on all new developments.
Section 106 charges would return for infrastructure requirements on large developments.
The changes are expected to be considered after parliament’s summer recess. The recommendations come from the Department for Communities and Local Government’s CIL review panel, set up as an independent working group chaired by former British Property Federation chief executive Liz Peace.
Changes are likely to need primary legislation and could be inserted into the Neighbourhood Planning and Infrastructure Bill. …
… Barratt Developments’ group land and planning director Philip Barnes said: “We were hoping that when CIL was introduced it would give us more clarity and certainty, but actually we are finding we often have to negotiate s106 on top of CIL. If these changes were introduced they would give developers greater flexibility, whichcould speed up the delivery of larger sites.”
Details yet to be determined include how the base tariff would be set, whether any types of development would be exempt, and howmedium-sized developments could avoid being hit by both CIL and s106 requirements.
CBRE’s chairman of UK planning Stuart Robinson said: “The key questions will be, who will set the tariff and on what basis? And how will does affordable housing fit in?”
Simon Ricketts, partner at law firm King & Wood Mallesons, said he would not want a lower CIL rate subsidised by higher s106 payments. He added: “If there is a shortfall between what is needed and a new, low CIL, that should not come from s106, which would add extra complexity.”