Cornwall Planning Partnership meeting – 7 March 2017 – Item 2

Questions and Answers regarding Community Infrastructure Levy (CIL)

Q: / Who decides whether to use CIL or a S106?
A: / CIL will be a set charge wherever it applies. S106 are used as needed. Parishes will still be able to comment on what they would like in a S106. 15% of CIL will be paid back to a parish unless there is a neighbourhood Plan, then 25% is paid back. However this is little comfort in areas where CIL is at zero rate. Options for the Council for remainder will be: 1) CC could give all money back to the parish, 2) it could keep all the money to spend on strategic projects, 3) a sliding scale between the above. CIL is at the discretion of the Council as to how it hands money back.
Q: / Who decides on the zones? Where is the logic in making poorer areas less well off by making them zero-rated and thus dependent on S106s. It is a concern.
A: / The rules of calculating CIL is formulae-based. You can’t apply a charge that would hamper development.
Q: / Will poorer areas get more development then, as there is no CIL?
A: / The Local Plan is very clear on where development should go, so it shouldn’t happen. S106s will be key to get money for critical infrastructure.
Q: / How will redistribution of money Cornwall-wide work?
A: / The Council itself can decide how to redistribute remaining money so other areas benefit.
Comment: Redistribution and the poorer areas should have been taken into account already in the CIL processes. Redividing up the money should be equitable and a system should be being developed.
Q: / If in a zero-rated area in small village, say an application for 120 dwellings is approved, how does the school get money to expand? S106?
A: / Yes through S106. We’re working with Education in discussions regarding what would fall into the remit of CIL.
Comments:
  • Noted recent appeal decision where Inspector allowed an appeal without Education and Open Space contributions.
  • Apology recently received from the Planning Inspectorate regarding their errors concerning Cornwall’s 5-year land supply
  • CIL are Government policies, not Cornwall Council’s, ie we are working to another’s set of rules, but in the next stage, we can put in some checks and balances.
  • Need to deliver housing to ensure 5-year land supply
  • All sorts of options to be considered by the new Administration

Q: / How far down the pecking order will local councils be in individual decisions on spending CIL money? There is a gap between now and the next stage and you are unhappy with the evidence so have got time to go back and seek evidence from parishes. This Group should be part of the process in building policies around CIL rather than after. Funding of areas through Planning Gain is critical.
A: / Local Councils are top of the pecking order to get 15% (or 25% in NDP areas). The CIL is unlikely to be used for key strategic infrastructureand other forms of funding sought. Some parishes have produced extensive evidence but it is not new evidence (it has already been taken into account or contained in CC evidence). The implications of NDP Primary Residence policies are not yet known, we’ll be carrying out further work to assess this.
Q: / Value zones – should there be a nominal CIL charge in zero areas? Any thoughts? How the CIL level was constructed, there are contradictions?
A: / Setting the CIL level is a technical process. Evidence and national practice advises against a ‘nominal’ CIL.
Q: / The Government commissioned a review of CIL?
A: / The panel report was published recently recommending a tariff approach to replace CIL, but the Government is not going to respond to that report until the Autumn. We can’t wait so we need to press on.
Conclusion:
If central Government had provided funding, this would not be necessary. We should do this ‘bottom-up’ with proper engagement; parishes will need to cluster together for infrastructure requirements. CIL may contribute to major infrastructure but will not fund it entirely. Communities do need to have the first ‘divvy’ on CIL and all parishes should have proper meaningful engagement with CC regarding policies.