If CIL replaces Section 106 levy, the district council can put the money received from CIL and spend it wherever and on whatever infrastructure it wishes – in the past S106 money had to be spent close to the particular development.

This means, for example, if most developments take place in Sidmouth, the money could all be spent in Cranbrook.

However, a proportion of CIL money is supposed to any town or parish where a development takes place when it has a neighbourhood plan in place.

“Using new powers introduced in the Localism Bill, the Government will require charging authorities to allocate a meaningful proportion of levy revenues raised in each neighbourhood back to that neighbourhood. This will ensure that where a neighbourhood bears the brunt of a new development, it receives sufficient money to help it manage those impacts. It complements the introduction of other powerful new incentives for local authorities that will ensure that local areas benefit from development they welcome.

Local authorities will need to work closely with neighbourhoods to decide what infrastructure they require, and balance neighbourhood funding with wider infrastructure funding that supports growth. They will retain the ability to use the levy income to address the cumulative impact on infrastructure that may occur further away from the development.”

Of course, as always, exceptions will be allowed to avoid it:

“Given the importance of ensuring that the levy does not prevent otherwise desirable development, the regulations provide that charging authorities have the option to offer a process for giving relief from the levy in exceptional circumstances where a specific scheme cannot afford to pay the levy. A charging authority wishing to offer exceptional circumstances relief in its area must first give notice publicly of its intention to do so. A charging authority can then consider claims for relief on chargeable developments from landowners on a case by case basis, provided the following conditions are met.

Firstly, a section 106 agreement must exist on the planning permission permitting the chargeable development. Secondly, the charging authority must consider that the cost of complying with the section 106 agreement is greater than the levy’s charge on the development and that paying the full charge would have an unacceptable impact on the development’s economic viability. Finally, relief must not constitute a notifiable state aid.”