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?
In areas where the community infrastructure levy (CIL) is being adopted, part of the cost of local and sub-regional infrastructure is met by the tax. In effect such infrastructure is that needed to support local areas which are to get increases of development, eg offices , dwellings, etc.
However, for the time being the cost of infrastructure which is specific to a particular development site is likely to be met by a section 106 Agreement. Similarly, where CIL is not adopted the aggregate of monies arising under section 106 Agreements may be thought of as contributing to local and possibly sub-regional infrastructure.
The arrangements for CIL are being developed largely by second tier local authorities, ie local planning authorities - such as district councils. It might be expected that parish and town councils will no doubt have or may intend to have a wish list of local infrastructure - which will be in accord with their duties and discetionary powers.
If such a council, say parish council has not prepared a list the members may find that their undeclared needs are not realised under CIL. Under the CIL arrangement "neighbourhoods" are destined to receive some of the CIL for local infrastructure improvements. Furthermore, under the Localism Act 2011 (Royal Assent 15 November 2011) such neighbourhoods are parish councils (and hence town councils) and neighbourhood forums.
It seems imperative, therefore, that where CIL is adopted by say, a district council the "neighbouhood", level local authorities should have in place their wish list for infrastructures which need attention. The "attention" is more than just provision but includes repair and maintenance, operating etc. The list of infrastructures might include:
- green infrastructure - allotments, footpaths, and cycleways;
- community buildings and amenities - village halls, and play areas; and,
- health facilities, eg doctor's surgery.
Elsewhere in the Localism Act 2011 there are provisions for a list of assets of community value to be prepared by say. the district council. No doubt CIL monies might be used for acquisition this context.
