COMMUNITIES AND LOCAL
GOVERNMENT News Release (018) issued by The Government News Network
on 24 January 2008
Councils who back
plans for new homes will be able to raise hundreds of millions of
pounds to spend on vital infrastructure like roads, schools, parks
and health centres.
Housing Minister Yvette Cooper is today setting out how the new
Community Infrastructure Levy (CIL), will help fund massive new
investment to sustain new homes, as part of the Government's
drive to support quality neighbourhoods.
Ministers believe it is essential that new developments have
parks, play areas and proper facilities and that more is done to
ease transport pressures when new homes are built. They are also
keen to ensure that small developments which can have a cumulative
impact on areas make a contribution to local infrastructure and facilities.
Independent evidence from Kate Barker and the National Housing
and Planning Advice Unit shows that there is a long-term need for
more housing to meet rising demand. But it is crucial that the
infrastructure is in place to create prosperous and sustainable communities.
The Levy will give councils the power to set charges to pay for
infrastructure when a new development takes place, which is
expected to unlock hundreds of millions of pounds more for local
infrastructure and services.
Under the current system, only 14 per cent of all residential
planning permissions make any contribution to the cost of
supporting infrastructure, and these generally cover the largest
schemes. However, even minor developments generate a need for
infrastructure and services in an area.
Ministers think it is right that all developments pay their fair
share and those who benefit financially when planning permission
is given should contribute back to the local community by funding
local infrastructure. That's why the new Community
Infrastructure Levy (CIL) has been included in the Planning Bill.
The new powers will allow councils to set a CIL for their area
following an assessment of local infrastructure needs and
consultation with their local community. Different types and sizes
of development would pay different amounts depending on local
needs to help ensure that the new infrastructure needed to
maintain sustainable growth is provided.
The option for councils to raise a CIL on developments come on
top of the £14 billion already being invested across Government to
provide infrastructure to support housing growth.
The CIL will work in conjunction with other incentives for
communities supporting new homes, including the £500m Housing and
Planning Delivery Grant (HPDG) and the £1.7 billion housing
infrastructure investment from the department.
Housing & Planning Minister, Yvette Cooper
said:
"Families across the country need more affordable
homes. We want to give more support to communities and councils
who are doing their bit to deliver the extra homes we need with
money for vital infrastructure.
"It isn't enough to build more homes. They need to be
in high quality neighbourhoods with proper infrastructure and
local facilities too.
"I want this new community levy to give councils and
communities the extra support they need to do their bit to improve
their area for families and for the future."
The document published today sets out further details of how the
CIL will be raised. Key steps include
* authorities producing a list of infrastructure needed to
support development in the area;
* authorities producing a
draft charging schedule for consultation of the rates the levy
might be set for the area. This means local people will have a
real say in what their local community needs and ensure the right
infrastructure is delivered;
* Councils to set out final
charging schedule for the levy. Land owners and developers will
know from the outset how much they will have to pay and what
infrastructure the CIL is paying for;
* Householder
developments by homeowners, such as extensions, would be exempt
from the levy;
* Planning obligations ('section 106
agreements') will continue to operate alongside CIL and will
deliver at least site-specific infrastructure and affordable
housing funding, complementing the new levy which will serve the
wider community.
The Government is creating these new powers in the Planning Bill
which has just begun its passage through the committee stage. It
is anticipated that local councils will be able to take advantage
of these powers from spring 2009.
Notes to editors
1. The document published today is available
at: http://www.communities.gov.uk/publications/planningandbuilding/infrastructurelevyguidance
2. Community Infrastructure Levy legislation is currently passing
through parliament as part of the Planning Reform Bill. The Bill
will improve the planning system so it is quicker, more
transparent, is easier for the public to become involved and will
support the green growth this country needs to sustain progress
into the 21st Century. It strengthens accountability and ensures
decision-making is transparent and fair with sustainable
development at its heart by locking public participation into each
stage of the process. The Bill will also reform the planning
system for major infrastructure projects which is increasingly
struggling to deal with the challenges of the 21st century -
climate change, protecting the environment and the need for new homes.
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