Since the introduction of CIL, 58 LPAs have been through the CIL examination process and had an Examiner’s report published. 50% of these have seen a reduction in either their maximum residential or retail rates during the CIL process (see CIL Process).

Of these, 13% had both their residential and retail rates reduced with analysis showing that on average residential and retail rates reduce by 29% and 39% respectively.

However, there are exceptions such as Poole Borough Council where the retail rate increased between the PDCS and DCS. The question is therefore whether or not this is the result of active engagement with LPAs?

Is engagement working?

We have looked at those LPAs where residential rates have reduced in greater detail to assess the effectiveness of engagement with the CIL process. 40% had their residential CIL rates reduced at Examination, although the average reduction in residential rates is still highest between PDCS and DCS at 20%, compared to just 12% between DCS and Examination.

This shows that Examiners play an important role in the CIL process and that engagement with the LPAs alone is not the only factor influencing the CIL rates being adopted.

Graph 2 uses Hometrack data as a starting point to assess the relative market strength of each LPA, and sets this against the number of representations made and the reduction in the residential CIL rates.

The resulting graph illustrates that there is an inverse relationship between stronger markets and the reduction in CIL rates, with the highest reductions seen in the areas with the lowest sales values.

Click the below image to enlarge

This is a point identified in the CIL: Getting it Right report, which highlighted the existence of a “viability squeeze” in mid-priced markets with limited capacity to fund infrastructure in areas with sales values under £250 per sq.ft. The key question is therefore how LPAs will fund infrastructure in the absence of CIL post-April 2015?

The key stages of the CIL process

Green indicates the stages during the CIL process where stakeholders can engage with the LPA.

Taken from
Spotlight: CIL - The Countdown to April 2015