Minutes:
The Overview and Scrutiny Panel (Economy and Growth) received a presentation from the Implementation Team Leader on the Community Infrastructure Levy (CIL). Members were informed that the Council introduced a CIL charging scheme in 2012 and that it is a levy payable by all eligible forms of development. The key points are as follows:
· CIL is likely to generate between in the region of £33m based on Core Strategy figures but this could rise to approximately £80m under the draft Local Plan. These figures are prior to exemptions and relief being granted. However £121m infrastructure funding gap had been identified as part of the infrastructure work to support the Core Strategy.
· Sites of 200 dwellings and above still require a Section 106 (S106) agreement.
· The Council receives funding from a range of sources including S106 obligations, CIL, Highways Contributions, New Homes Bonus and the Retention of Business Rates.
· CIL is paid on development that involves buildings that people go into.
· The developments that are exempt from CIL liability include social housing, charities and self-build dwellings, on meeting certain criteria.
· The amount of CIL paid to a Parish depends on the establishment of a Neighbourhood Plan. If there is a Neighbourhood Plan the amount paid is 25% if there isn’t then it is 15%. There has been one payment in an unparished area.
· CIL accounts for 3-5% of a developer’s costs.
· Any CIL the Council receives has to be spent on infrastructure however it could be spent on infrastructure outside the District if that infrastructure has an impact upon the District.
Following a query from a Member regarding the CIL liability of industrial and retail sites the Panel was informed that retail developments are liable for CIL however industrial developments currently do not pay CIL as evidence at the Charging Schedule examination showed that a charge could make such developments unviable.
In response to a question on what Parishes can spend CIL money on Members were informed that Parishes have more flexibility than the Planning Authority however the money should be spent on infrastructure. If the CIL is not spent in accordance then the Planning Authority could get the Town or Parish to pay back the money. In addition the Panel was informed that Parishes have five years to spend the CIL funding.
The Panel was informed in response to concerns that Council staff are stretched as a result of administrating CIL, the legislation allocates 5% of CIL to the Authority to cover administration costs.
In response to the point that in 2010 £1.3m was not paid in S106 contributions which could have been, the Panel was informed that there was a series of developments that was not contributing S106 however if CIL was established then those developments would be making CIL contributions towards infrastructure needs.
Following a question regarding the charging schedule Members were informed that the schedule was established following viability work. Under the CIL Regulations 2010 (as amended) the charges set in the Charging Schedule are index linked. The schedule will be reviewed once the Local Plan process has progressed.
A concern was raised that CIL could be affecting development within the District however Members were informed that CIL represents a realignment of costs for developers and that it is not stopping development as development is still coming forward in Huntingdonshire.
Members were reminded that the CIL Annual Report will be presented to the Panel before it is submitted to Cabinet.
(At 7.00pm, during the discussion on this item, Councillor’s J D Ablewhite and K D Wainwright entered the meeting).
(At 7.01pm, during the discussion on this item, Councillor R B Howe entered the meeting).
(At 7.59pm, on the conclusion of this item, Councillor R B Howe left the meeting).