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Community Infrastructure Levy

The Levelling-up and Regeneration Act 2023 (LURA) sets out the legislative framework for a new development planning levy, the Infrastructure Levy (IL). It is intended that IL would replace the Community Infrastructure Levy (except London) and potentially accommodate all financial contributions currently dealt with by way of Section 106 agreements. LURA inserts new provisions into the Planning Act 2008. The provisions relating to IL are not currently in force. IL will only come into effect when secondary legislation is introduced, and the details are set out. Fundamentally, most provisions in the LURA relating to IL encompass what future regulations can cover, and, as with the Community Infrastructure Levy, important details will be included in those regulations. As a result, the provisions relating to IL closely mirror the existing framework in the Planning Act 2008 Act relating to CIL and do not provide for the mechanics of how IL would operate. 

The Community Infrastructure Levy (CIL) system allows local authorities to raise funds from developers undertaking new building projects in their area. These funds are then used to support infrastructure needs arising from development, such as roads, schools, and public transport.

Parish and town councils' roles in the CIL process can vary depending on the specific arrangements made with the local planning authority. In some cases, parish and town councils may have a say in how CIL funds are spent within their area. They may be able to submit bids for projects or provide input on infrastructure priorities.

Parish and town councils can also engage with the local planning authority during the CIL process to ensure that the local community's needs are considered when determining CIL rates and spending priorities. Additionally, parish and town councils may have the opportunity to receive a portion of CIL funds for projects within their jurisdiction.

While parish and town councils may not directly administer the CIL system, they can influence how CIL funds are allocated and ensure that their communities' infrastructure needs are addressed.

The CIL system offers several benefits for local authorities (including parish and town councils):

  • Funding for infrastructure — One of CIL's primary benefits is that it provides a dedicated source of funding for infrastructure projects in areas experiencing development. These can include road improvements, schools, parks, and other essential facilities.
  • Support for growth — CIL helps ensure that new development contributes to the cost of necessary infrastructure, supporting sustainable growth without placing undue financial burdens on existing residents and taxpayers.
  • Local control — Parish and town councils can have a say in how CIL funds are spent within their area. This can allow for greater local control over infrastructure priorities and ensure that investments align with residents' needs and preferences.
  • Transparency and accountability — The CIL process typically involves public consultation and transparency in decision-making, helping to ensure that funding decisions are made fairly and accountable.
  • Flexibility — CIL funds can address various infrastructure needs, allowing local authorities (including parish and town councils) to respond to changing community priorities over time.
  • Long-term planning — By establishing a dedicated revenue stream for infrastructure investment, CIL encourages long-term planning and investment in essential facilities to support sustainable development.
  • Reduced dependency on grants — CIL reduces the reliance on government grants or borrowing to fund infrastructure projects, allowing local authorities (including parish and town councils) to maintain greater financial independence.

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