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BPF welcomes changes to the Community Infrastructure Levy

The British Property Federation has today welcomed the announcement of government plans to reform the Community Infrastructure Levy.

Liz Peace, chief executive of the BPF, said: “A tariff-based system such as the CIL represents a fair trade-off that both developers and local authorities can live with, so the BPF welcomes the government's decision to retain the Community Infrastructure Levy subject to a number of amendments.

“The development sector may end up paying more but in return it gets greater simplicity, certainty, predictability and transparency. It should also benefit from the public sector’s ability to deliver more funding for infrastructure, thereby reducing one of the significant barriers to development.

 "However, there are a number of flaws in the CIL regulations that the BPF will be looking to the government to remedy. In particular, the BPF believes that the government should permit developers to make “payments in kind” through the provision of infrastructure, where this can be locally agreed. In appropriate cases, that would allow the private sector to become the principal agent of delivery, a role it might often be better equipped to fulfil than the public sector.

 "Another major concern is that CIL may well be good at raising money, but it contains no obligations for it to be spent. Embedding a local tariff within the Development Plan, coupled with a requirement for sound infrastructure delivery planning policies would address this concern. 

"And if localism is to mean anything then local authorities must be able to exercise a judgment as to whether or not to charge the full tariff in a situation where such a charge would threaten the viability of a scheme considered to be of great local importance. Clearly, there must be a sensible set of criteria to prevent frivolous applications being made for exceptional relief, but there remains concern that the current criteria will not allow genuine exceptions to access the relief, and to bring forward development where otherwise it would be impossible."

The Community Infrastructure Levy gives local authorities in England and Wales the option to raise funds from developers undertaking new building projects in their area.

In a submission to CLG in September the British Property Federation called for the introduction of a tariff-based approach that would provide local authorities with an additional source of revenue that can be used more flexibly to bring forward infrastructure than the current system of planning obligations

CLG Press Release: http://www.communities.gov.uk/news/corporate/176860911

For more information or to organise an interview, please contact:

Patrick Clift, Media and Public Affairs Manager, the British Property Federation, on 07834 439 505, or pclift@bpf.org.uk

Paul Sweeney, Media Assistant, British Property Federation, psweeney@bpf.org.uk  – 020 7802 0113 / 07841 732194