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The Drivers Jonas Deloitte Community Infrastructure Levy Survey

Drivers Jonas Deloitte has analysed the results of its latest Community Infrastructure Levy (CIL) survey and found that almost 70 per cent of Local Authorities are intending to adopt CIL. This represents a substantial shift from our previous survey in 2010 where only 20 per cent of authorities proposed to adopt CIL.

The Community Infrastructure Levy was introduced in the 2008 Planning Act as a means of securing funding for infrastructure from development. Although it was initially promoted by the Labour Government, the Coalition Government has confirmed their commitment to CIL. This is the third year that Drivers Jonas Deloitte has undertaken the CIL survey of all Local Authorities in England (excluding National Park Authorities). This year’s survey was undertaken in the context of a change in Government, additional CIL regulations and the Localism Bill.

The survey has identified a number of interesting results, many of which can be compared to the previous surveys to highlight a change in attitude.

Key findings include:

  • 68 per cent of authorities are proposing to adopt CIL. This can be compared to 20 per cent in 2009;
  • 30 per cent of authorities are still unsure whether they will adopt CIL due to concerns about resources and Councillor’s views;
  • Outside of London, only three authorities have already consulted on their CIL charging schedule* and anticipate Examination in Summer 2011;
  • Approximately 10 per cent of Authorities are currently preparing their charging schedule and anticipate that it will be consulted upon within the next 12 months;
  • Almost 60 per cent of authorities are yet to commence on the initial stages. Many cite pressure on resources for the slow start on CIL. In addition, authorities are seeking to learn from the experience of others, in particular the front runner authorities;
  • Linked to the pressure on resources, only 28 per cent of authorities currently have an adopted Core Strategy, although a significant number of authorities (40 per cent) are at the later stages of the process. As a result, the focus has been on completing these policy documents before starting to progress work on CIL;
  • Many authorities are proposing to join forces with neighbouring authorities, or utilise existing cross boundary planning units, to prepare their evidence base and take forward CIL. This is are a way of responding to constraints on resources;
  • Many authorities anticipate utilising existing work on their Infrastructure Development Plan from their Core Strategy to underpin their work on CIL; and
  • Although the survey was focused on CIL, a number of authorities stated that they were considering other forms of funding for infrastructure including TIFs, Tourism Tax and New Homes Bonuses.

Julia Chowings, director in planning at Drivers Jonas Deloitte, comments: “Since our 2009 survey there has been a change in government but it has sent a clear message that CIL is here to stay. As a result there has been a significant increase from our last survey of the number of authorities that propose to implement CIL. Many of these had previously been holding back waiting to see if the initiative was going to be dropped by the new government.”

It is clear that local authorities are still under pressure for resources, as a result the focus has been on adopting their core strategies. Chowings added: “There is still a much lower than expected number of authorities who have an adopted Core Strategy (28 per cent). This is clearly delaying work on CIL as adoption of their Core Strategy remains the priority.

“Only a small number of authorities are advanced on CIL and the Government has recognised this in identifying them as ‘front runner’ authorities. We anticipate that their progress will be watched closely with many learning lessons and best practice from their experience. It is apparent that many authorities are keen to share costs and resources by joining forces with neighbouring authorities to work on CIL. The anticipated formation of LEPs in many areas may facilitate this.”

For further details, please contact:

Julia Chowings
Director, Drivers Jonas Deloitte
Direct Line: 0207 303 3498 | Mobile: 07881 952 956

Lyndon Gill
Assistant Director, Drivers Jonas Deloitte
Tel/Direct: 020 7303 3633 | Mobile: 07909 878 461

Notes to editor
London Borough of Redbridge, Newark and Sherwood and Shropshire. These have all been identified as ‘front runner’ authorities. Other front runner authorities include Greater London Authority, Colchester Borough Council & Essex County Council, Greater Norwich Development Partnership, Bolton Council and Mid Devon District Council.

Drivers Jonas Deloitte provides comprehensive property consultancy, transaction and advisory services across the private and public sectors. The Real Estate group at Deloitte and Drivers Jonas Deloitte consists of over 1,000 professionals, with specialist real estate knowledge across all areas of business. The breadth of depth of the practice allows expert teams with specific skills to address clients’ needs. It is the largest real estate business in Europe. For more information, please visit www.djdeloitte.co.uk.

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The information contained in this press release is correct at the time of going to press.

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