Community Infrastructure Levy (CIL) has finally arrived.  Earlier this month (December 2011) Newark and Sherwood was the first district council to adopt CIL, and we understand that Shropshire will follow shortly.

CIL will apply to all developments granted planning permission after the CIL adoption date in the relevant planning district.  The levy will be much less flexible than Section 106 contributions, because there is no facility for amendment following a viability reassessment.

In its November document “Laying the Foundations – a Housing Strategy for England” the Government announced a consultation, to be launched in December 2011/January 2012, to allow developers to require local authorities to reconsider Section 106 Agreements agreed prior to April 2010, together with proposals to ensure that any resulting appeals are dealt with promptly.  The Strategy expresses the aim of trying to reactivate schemes which had stalled owing to unviability caused by Section 106 requirements which were negotiated “in more prosperous market conditions”.

Such a review must surely call into question the whole principle of CIL, where the current economic climate is putting such pressure on viability.  It remains to be seen how the Government’s avowed intention to “encourage a flexible approach to planning obligations, to safeguard against substantial and unexpected change in market conditions” (paragraph 30 of chapter 2 of the Strategy) will be squared with the apparent inflexibility of CIL tariffs.

For further discussion please contact James Halliday at :  James.halliday@foremanlaws.co.uk  or  Robert.day@foremanlaws.co.uk