The British Property Federation (BPF) the Home Builders Federation (HBF) have appeared before a Parliamentary Committee scrutinising the Planning Bill to highlight key issues on proposals for a Community Infrastructure Levy (CIL). Following significant pan-industry concerns over a Planning-gain Supplement (PGS) and support for an alternative tariff-based approach, the CIL was proposed as the best method for funding infrastructure needed for local development. Welcoming a local approach Industry leaders have welcomed the CIL – particularly its local basis which places the responsibility for setting, collecting and disbursing it at local authority level. This will maintain the essential relationship between developers, local authorities and their communities, ensuring that contributions from developers are channelled locally to support infrastructure for housing and commercial developments. Assessment must be local Industry leaders stressed that the starting point for CIL must be a local assessment of the infrastructure required to support planned development with consideration to what charge is appropriate and viable in that area. They called for clauses in the bill appearing to link CIL to changes in land values to be removed, since this approach would raise the same significant valuation problems associated with PGS. Such proposals would undermine the workability and clarity of the CIL approach. The levy must be additional The industry has also called for an assurance from ministers that the funds raised through the CIL should be regarded as additional to the existing sources of finance available to fund infrastructure and that it should not lead to any reduction of local or national budgets. They stress that only if the money raised through the CIL is ring-fenced to provide additional infrastructure will there be any real benefit in terms of providing support for more housing and commercial development. Levy must be set through Local Development Framework The HBF and BPF have also called for the Planning Bill to spell out the need for the CIL to be derived from the infrastructure planning element of the local plan-making process, known as the Local Development Framework (LDF). There is currently no reference in the bill to how CIL should be determined locally, but transparent local infrastructure plans linked to future development are a key facet of the tariff approach, and these should then be tested at public inquiry. This will allow for the proper calculation of an appropriate developer levy. A full transcript of the session, which you can use for quotes, will be available from Wednesday, please go to www.bpf.org.uk. Contact Andrew Teacher at the BPF on 07968 12 4545 ateacher@bpf.org.uk Contact John Slaughter at the HBF on 020 7960 1600 or through Paul Boulter at Portland on 020 7421 6140 Notes for editors 1. The British Property Federation (BPF) and the Home Builders Federation (HBF) together with a grouping of major developers and London First have worked closely with the government in recent months on the arrangements for the proposed Community Infrastructure Levy (CIL). 2. The framework for the CIL is set out in ten clauses of the 189 clause Bill that also covers the government's proposals for an Infrastructure Planning Commission to manage applications for major infrastructure projects For all media information, please contact: Paul Boulter 0207 421 6140 07814 506 378 paul.boulter@portlandpr.co.uk
