Community Infrastructure Levy No 3 - CIL Charging Policy

This post looks at charging policies and begins with a look at various rates, exemptions, and exceptions. Some policy has a foundation in the Planning Act 2008 (as amended) and in the regulations. Examples of implemented policy will be used to illustrate the subject. [Updates will explore the implementation further.]  

In Shopshire, there are two charging zones, namely: 

• that for Shrewsbury, market towns and key centres; and,
• that for the rest of the county.

Subject to some housing exceptions, housing, ie private sector housing in the county, takes the brunt of the charging policy. 

Insurance Rebuilds
It may be noted that modest extensions escape the charge unless they exceed 100 square metres. It seems that rebuilds after a destructive fire would be included: but an insurance-covered replacing of a destroyed home with two or more dwellings may cause problems!

Rates
CIL is charged at £40 per metre squared on newly build housing in the following settlements:

• Shrewbury;
• the market towns; and,
• key centres.  

Elsewhere the charging rate is £80 per square metre. Thus, it seems, other settlements, eg the villages which are not "key centres" will bear the brunt. [The Shopshire website on CIL has not explored in detail and there is a lot of it!] 

Effective Date:
The CIL scheme for Shopshire begins on 1 January 2012. Developers of housing who get planning permissions next year and thereafter will face the charge. 
"Nil" rate
For the time being there are some nil rate of CIL categories as follows:

• affordable housing has a nil rate;
• employment-related developments have a nil rate;
• other non-housing developments have a nil rate 

One supposes that nil rate means that at some time one or more of these categories could come within the charge but I would not expect affordable housing to ever be charged...?



 http://www.shropshire.gov.uk/planningpolicy.nsf/open/63C27CBEAE1E06AF80257922004CC8E3
The kinds of concerns which developers need to check include:

• Does CIL apply to my development?
• What rate applies?
• Can I pay by instalments?