Introduction to Community Infrastructure Levy

Along with many Local Authorities across the country, the Council is intending to introduce a Community Infrastructure Levy (CIL). Councils who introduce CIL are known as Charging Authorities.

The CIL Regulations 2010 (as amended) enable local authorities to raise funding for new infrastructure by levying a charge on new development within their area. CIL will be an important tool for the Council for funding and delivering critical infrastructure for future development in the Borough to meet local needs.

For the purposes of CIL, infrastructure is defined in the Planning Act (2008) as roads and other transport facilities, flood defences, schools and other educational facilities, medical facilities, sporting and recreational facilities, and open spaces. Some or all of these types of infrastructure can be funded, either whole or in part, through CIL.

A CIL charge may be levied on different land uses (for example, residential, retail and commercial) and will be charged in £ per square metre of new development (a new building or an extension) over 100 square metres of gross internal floorspace. CIL can also be levied on new dwellings even if they fall below 100 square metres.

Different rates can also be set for different areas across the Borough for each use, known as a differential rate, provided there is appropriate viability evidence for doing so. Charging authorities need to be able to show why they consider that the proposed levy rate(s) sets an appropriate balance between the need to fund infrastructure, and the potential implications for the economic viability of development across their area. Test Valley Borough Council will be using differential rates for CIL. These have been found to be acceptable at Examination and set an appropriate balance between the need for infrastructure and the economic viability of development. Please see our Examination page for further details.

The government believes that CIL is fairer, faster, more certain and transparent then the current system of planning obligations. The proposed introduction of a CIL is also driven by future limitations which have been placed on the ability of councils to use S106 monies to provide for infrastructure beyond the mitigation of specific developments. The Council will collect CIL and has the discretion to decide priorities for expenditure of CIL money collected. The list of infrastructure that the Council intends to spend CIL receipts on is known as a Regulation 123 List.