The Government recently published a series of planning related documents, including a White Paper on the Future of Planning and consultation. Proposals include plans to replace the Community Infrastructure Levy with a consolidated Infrastructure Levy, with current exemptions potentially under review. Charitable relief (which CTG was involved in securing) is mandatory where a charity owns a material interest if the development is to be used wholly or mainly for a charitable purpose of the charity in question or of that charity and another charity (or charities).

In February 2017, the Government published the results of its independent review into CIL and its relationship with planning obligations. The Review found that the system of developer contributions was not as fast, simple, certain or transparent as originally intended. It also suggested that this was in part caused by the significant number of exemptions to CIL that had been established. It recommended replacing the CIL with a system including “no or very few exemptions”. Rather than replacing the CIL regime wholesale  the consultation proposed to instead give Local Planning Authorities more flexibility in their approach to CIL, as well as considering limiting the use of s106 agreements to an extent. CTG responded to the consultation in a joint submission with the Charities’ Property Association and Churches’ Legislation Advisory Service. The response welcomed the retention of the charity exemption from CIL and called for explicit confirmation that this would extend to any complementary or successor Tariffs. Importantly, in a summary of responses document, the Government confirmed that it “intended to retain current exemptions” which include the charity exemption, which was reassuring news for charities and highlights the importance of continued lobbying on this point.

CTG submitted a response , in association with the Charities’ Property Association, and the Churches’ Legislation Advisory Service,  calling for a charity exemption to be retained for the consolidated Infrastructure Levy, if implemented.

Planning for the Future White Paper – Response by CPA, CLAS and CTG

Consultation

The Planning for the Future policy paper states:

The Community Infrastructure Levy and the current system of planning obligations will be reformed as a nationally-set, value-based flat rate charge (“the Infrastructure Levy”). A single rate or varied rates could be set. The Government will aim for the new Levy to raise more revenue than under the current system of developer contributions and deliver at least as much – if not more – on-site affordable housing as at present. This reform will enable the Government to sweep away months of negotiation of Section 106 agreements and the need to consider site viability. The Government will deliver more of the infrastructure that existing and new communities require, by capturing a greater share of the uplift in land value that comes with development. The Government will be more ambitious for affordable housing provided through planning gain and will ensure that the new Infrastructure Levy allows local planning authorities to secure more on-site housing provision.

The Government will give local authorities greater powers to determine how developer contributions are used, including by expanding the scope of the Levy to cover affordable housing provision to allow local planning authorities to drive up the provision of affordable homes. The Government will ensure that affordable housing provision supported through developer contributions is kept at least at current levels, and that it is still delivered on-site to ensure that new development continues to support mixed communities. Local authorities will have the flexibility to use this funding to support both existing communities as well as new communities.

The Government proposes that the existing regimes for securing developer contributions, through the Community Infrastructure Levy are replaced with a new, consolidated ‘Infrastructure Levy’. The Government will also look to extend the scope of the consolidated Infrastructure Levy and remove exemptions from it to capture changes of use through permitted development rights.