UK: Proposals On Community Infrastructure Levy (January 2008)

Last Updated: 3 April 2008
Article by Alison Whitelam

What is the CIL?

The CIL is a standard charge to be levied on new developments. Its purpose is to fund infrastructure to support the increase in housing identified as being required, most recently in the Housing Green Paper. It is being promoted as an alternative mechanism to the unpopular Planning Gains Supplement (PGS) proposals first mooted by the Government in 2003.

However, there is concern in the development industry that the following CIL provisions in the Planning Bill may mean PGS via the back door: "the overall purpose of CIL is to ensure that costs incurred in providing infrastructure to support the development of an area can be funded (wholly or partly) by owners or developers of land the value of which increases due to permission for development". Lobbying and informal consultation are taking place.

What infrastructure will be funded by the CIL?

The DCLG intends that the definition of infrastructure in the forthcoming CIL regulations will be very broad. In addition to transport and strategic infrastructure, social infrastructure such as schools, parks, health centres and flood defences may be funded by the CIL. The DCLG paper makes it very clear that CIL should not be levied at the expense of affordable housing provision. As a safeguard, affordable housing will be included in the definition of infrastructure and CIL may be used to fund it if necessary in the future.

The DCLG does not expect CIL to pay 100% of the cost of any infrastructure, or to fund existing infrastructure deficiencies, or act as an alternative to general local authority expenditure.

There is concern, particularly from the Home Builders Federation, that if the final definition is too wide the lack of clarity may result in each authority using a different "wish list" of infrastructure and extensive "wish lists" may make development unviable.

Developers will also be looking for safeguards in the regulations to ensure that the "infrastructure" funded by CIL receipts is not the same infrastructure which is required by additional Section 106 obligations.

How will CIL be calculated?

The level of CIL will be set by charging authorities, which may be the local planning authority, the county, borough or district council, the Secretary of State, the Welsh Ministers, the Mayor of London or any other authority with responsibility for town and country planning.

The CIL regulations will set out how to calculate CIL. A minimum threshold for CIL is expected, which will exclude householder development. The DCLG wishes to see more infrastructure funding from development than under the existing Section 106 regime; so the financial burden will rise.

The charging authorities will need to identify what infrastructure is needed, how much it will cost and what contribution each development should make to that cost. They are expected to have regard to development viability and to restrict CIL to items that have a reasonable prospect of happening within the plan period. CIL charging schedules are currently expected to be tested through the development plan process.

Drawing up these charging schedules will require a skill set and resources which do not currently exist within some overstretched local planning authorities. The development plan system is already struggling to produce Core Strategies following the 2004 Act reforms.

Local planning authorities following best practice should already be developing standard Section 106 charges in their development plan documents and they may therefore have already undertaken some of the necessary analysis to inform the CIL levels; but many are not.

The need to test CIL charging proposals may further slow down the development plan process and fail to provide the certainty, flexibility and responsiveness sought from development plans and CIL. This may simply move the delay thought inherent in agreeing infrastructure funding in Section 106 negotiations from the development control stage to the development plan stage.

When will CIL be calculated and paid?

The planned point of payment is commencement of development, with proposals to allow payment by instalments. CIL is anticipated to be calculated when planning permission is fully effective, which may mean the amount of CIL will not be known at outline stage.

The payee may be the landowner or the developer. CIL may be paid in money or in kind, for example by gifting land for a particular purpose.

Surveyors ultimately expect market value and bids to reflect the amount of CIL as a development cost. However, until CIL proposals are finalised, they caution that suitable provision will need to be made in contingent land agreements to ensure landowners are not left exposed to payment of CIL despite receiving market value already reflecting the levy, and to ensure that developers are not left to pay CIL twice by it not being reflected in market value calculations.

Will there be controls on how authorities spend the CIL receipts?

The CIL regulations may impose accounting, monitoring and reporting obligations on any body which is passed CIL receipts. The regulations may require the charging authorities to publish a list of projects be funded by CIL and make provision about repayment of unspent receipts. For some authorities this will represent a tighter regime than they currently accept under Section 106 Agreements.

Will there be sanctions for developers and authorities breaching the CIL regulations?

The DCLG is minded to propose that payment of CIL be enforced by halting development, or imposing a land charge on the property to be developed, with possible criminal offences for deliberately evading or obstructing CIL.

The Secretary of State may reserve the power to cap CIL levels set by authorities and to direct spending of CIL. However, these powers will be a last resort and, in the current climate of decreasing Governmental involvement in planning decisions, may be used very selectively and therefore have little controlling effect on authorities.

Will CIL replace Section 106 Agreements?

Not entirely. The Planning Bill and the recent proposals permit, but do not require, local authorities to charge CIL. CIL was preferred to PGS as it was more akin to the Milton Keynes tariff system which is currently in operation in some local authorities to calculate Section 106 payments. If local planning authorities have chosen not to, or do not have the resources to, draw up their own tariff systems under the existing Section 106 regime, it is questionable whether they would draw up CIL charging proposals under a permissive CIL regime unless they anticipate recovering significantly more funding from developers under this regime.

Where authorities do adopt a CIL regime, the DCLG currently anticipates that Section 106 Agreements will still be required in three areas: (1) non-financial, technical or operational matters; (2) site-specific impacts on the immediate area; and (3) affordable housing provisions.

When will the CIL proposals be finalised and CIL come into force?

The DCLG is currently informally consulting with a group including HBF, BPF, London First and the Major Developer's Group. It expects to formally consult on draft CIL regulations in Autumn 2008, with a view to finalising these in Spring 2009. The regulations will then need explicit approval in the House of Commons before coming into force.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.