CIL In London

CIL IN LONDON

February 2019

What is CIL?

• Tax on Development

• Regulations published 2010

• First London charging 2012

• Now covers 30 of 33 Boroughs and Mayor

• Intended to replace

‘tariff type’ S106

• Flexibility for Boroughs to spend

• Can be used for capital and operational funding

• Neighbourhood proportion can be used for anything that supports development in the area

CIL vs S106

• CIL

• Fixed Levy

• ‘Cumulative Impacts’ of development across area

• Can be spent on any infrastructure at Charging Authority’s discretion

• ‘Local Proportion’ –15% or more in area local to development

• Section 106

• Negotiated legal agreement

• On and off site (if meets tests)

• Must be necessary, directly related, fair and reasonable (Reg. 122)

• Limitations on pooling, restricts ‘tariff type’ contributions (Reg. 123)

CIL, S106 & Infrastructure Planning

Infrastructure Delivery Plan/Framework

Local Plan

Planning Obligations/ Requirements

CIL Charging Schedule

Viability Assessment(Plan Wide and Strategic Sites)

List of Relevant Infrastructure (Regulation 123 List)

Viability Assessment(CIL)

Funding Gap

Types/Projects

Requirements

to

support

development

including

strategic sites

CIL in London

How much has been collected and spent?

£-

£50,000,000.00

£100,000,000.00

£150,000,000.00

£200,000,000.00

£250,000,000.00

£300,000,000.00

£350,000,000.00

£400,000,000.00

£450,000,000.00

£500,000,000.00

Collected Spent

£433 million

£120 million

Borough CIL Collection & Expenditure: 2011/12 to 2017/18

Source: Quod review of Borough CIL Annual Reports for Boroughs where available

How much has been collected and spent?

Borough CIL Collection: 2011/12 to 2017/18

Source: Quod review of Borough CIL Annual Reports for Boroughs where available

£-

£20,000,000.00

£40,000,000.00

£60,000,000.00

£80,000,000.00

£100,000,000.00

£120,000,000.00

£140,000,000.00

£160,000,000.00

£180,000,000.00

£200,000,000.00

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

How much has been collected and spent?

Source: Quod review of Borough CIL Annual Reports for Boroughs where available

Borough CIL Expenditure: 2011/12 to 2017/18

£-

£10,000,000.00

£20,000,000.00

£30,000,000.00

£40,000,000.00

£50,000,000.00

£60,000,000.00

£70,000,000.00

£80,000,000.00

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Total CIL expenditure

Who Has Raised CIL?

4 Authorities, Half of Borough CILWandsworth: £95.7 million

Brent: £50.7 million

Tower Hamlets: £39 million

City of London: £27.5 million

2 £20 million PusLambeth: £20.6 million

Barnet: £20.4

4 £13 plus millionIslington: £18.6 million

Westminster: £17.5 million

Hackney: £16.5 million

Camden: £13.3 million

75% in 10

Boroughs

What has it been spent on?

Transport

£22 million

Roads, Pavements &

Public Realm

£26.8 million

Half on: Half on:

Education

£19.2 million

Indoor & Outdoor Sport

£19 million

Parks and Open Space

£7.6 million

Everything Else

£22.4 million

Source: Quod review of Borough CIL Annual Reports for Boroughs where available, identified items

CIL Reform

• Closed 31 January• Likely to be implemented

this year• Removal of Regulation

123:• Pooling Restriction• R123 list

• More detailed requirements for monitoring and reporting CIL and S106 collection and expenditure

Key Points for Parks and Open Space Officers

• Get involved in infrastructure planning: influence the plan for on and off site requirements;

• Identify specific projects: promote in internal funding allocation mechanisms;

• Reg. 123 list not that important, being on it doesn’t mean projects will be funded, internal funding process much more important;

• Think at different scales:

• Neighbourhood: are their trusts of voluntary organisations who can promote local projects?

• What strategic sites are coming forward and what can be promoted?

• Be aware of internal processes and expenditure – watch out for underspends or opportunities;

• Be reasonable and flexible in S106 negotiations, developers often like parks and open space so work with the grain, think about specific improvements;

• CIL will be cyclical – receipts tied to market trends so watch out for downturns.