Starting in December 2008, the Planning Bill is anticipated to be introduced in stages. The aim is to speed up the planning process with a particular emphasis on streamlining decisions relating to major infrastructure of national significance.
The Bill also introduces a new planning charge referred to as the Community Infrastructure Levy (CIL).
The CIL will enable local authorities to apply a levy to all new residential and commercial developments. The aim is to ensure the costs incurred in providing infrastructure to sustain a development will be subsidised by land owners who have benefitted from the uplift in the value of their land as a result of planning permission. Ultimately, the Levy is designed to help unlock development and increase the supply of land by delivering necessary infrastructure.
The levy will be payable when development is commenced by the owner of the land at that time and will supplement the existing section 106 system which already seeks contributions from developments for community facilities. The amount payable is to be based on a ‘costed assessment of the infrastructure requirements’ resulting from the development, taking account of land values and potential uplifts as a result of planning permission.
It is clear the proposed Community Infrastructure Levy will further increase costs associated with the planning process; if the Levy raised is too large there is a possibility that it could make some potential development sites uneconomical.
On the upside, the introduction of the Levy could offer more certainty on what a land owner or developer may be required to contribute to infrastructure costs and reduce the time taken to negotiate a planning obligation.
For further information contact Abby Deakins 01905 459425 email abigail.deakins@fishergerman.co.uk
