Community Infrastructure Levy

Rebalancing the relationship between the charging authority and the independent examiner so the elected body has the final say on how they implement a charge in their area (clause 102 of the Localism Bill)
Community Infrastructure Levy

This document sets out how we propose to require charging authorities to pass a proportion of funds that they receive through the Community Infrastructure Levy to other bodies. Clause 103 of the Localism Bill allows ministers to lay regulations to place a duty on charging authorities to pass a proportion of the funds that they raise through the levy to other persons. We intend to use the powers conferred by this clause to require charging authorities to allocate a meaningful proportion of the revenue generated from the levy to the local elected council for the area where the development and growth take place.

These neighbourhood funds form an important part of the Government’s objective to strengthen the role and financial autonomy of neighbourhoods. This will give neighbourhoods far more ability to determine the shape of their area and to help communities accommodate the impact of new development. This chapter seeks views on a range of issues around the application of neighbourhood funds: who should receive the funds; the proportion of receipts that are to be passed down; the timing, reporting and monitoring of payments; and the relationship between neighbourhood funds and planning obligations.

Essentially

This will consider

• rebalancing the relationship between the charging authority and the independent examiner so the elected body has the final say on how they implement a charge in their area (clause 102 of the Localism Bill)

• clarifying that the Community Infrastructure Levy can be spent on the ongoing costs of providing infrastructure as well as the initial costs (clause 103 of the

Localism Bill)

• requiring charging authorities to pass a meaningful proportion of receipts arising from development to other persons (clause 103 of the Localism Bill), which we will use to direct funds to the neighbourhoods where development takes place.

The Bill also contains powers for Mayoral Development Corporations to become charging authorities for their area Consultees are invited to provide their views on allowing spend on affordable housing and the issues are set out in chapter 2 of this consultation