Research article

How much CIL has been spent?

None of the Charging Authorities that have reported on CIL receipts have spent any money generated by CIL.

While the London Mayoral CIL is clearly shown to be a success, Graph 1 also indicates that the total CIL receipts from other Charging Authorities has increased over time.

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Graph 1

This is illustrated in Graph 2, which shows the average total CIL receipts collected per Charging Authority increases dramatically in the second year of charging. This would suggest that it takes at least a year for the local market to adjust to the new system.

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Graph 2

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Table 1

To date, none of the Charging Authorities reviewed that have published Annual CIL Reports, have spent any of the money generated by CIL, with the exception of 5% for administrative costs and the transfer of receipts to local communities.

The amount transferred to Town and Parish Councils has been lower than the 15-25% mandated under the CIL Regulations. In the period April 2011 to April 2014, 44% of the Charging Authorities reviewed reported that a 'top slice' had been transferred to local communities. In total just over £345,000 was transferred equating to 12% of total CIL receipts (excluding London Mayoral CIL), suggesting that local communities are receiving a limited share of CIL.

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Graph 3

These figures are at odds with the findings of a Freedom of Information Act request by Planning Resource, which indicated that only £92,000 
 of the £9.2 million collected by 26 Charging Authorities in the period April 2013 to June 2014 had been passed to local communities.

This figure suggested that only 
1% of CIL receipts were making 
their way to Town and Parish Councils. There is subsequently a continued lack of transparency over the level of CIL that is being transferred to communities.

This is no great surprise. The average amount of CIL collected across the 16 authorities that have published reports is just £300,000 (excluding the London Mayoral CIL).

Operation of CIL

The CIL Regulations introduced a restriction on Section 106 pooling from 
April 2015, irrespective of whether a CIL is in place.

This is a major new 
area of complexity for both Local Authorities and the development industry to tackle.

It is therefore essential that Local Authorities identify the Section 106 obligations have been collected by infrastructure type and project since 2010 to ensure that they are in conformance with Regulation 123.

To date, very few, if any, 
Local Authorities have published such a list. This is concerning and creates further uncertainty over the Section 106 obligations that can be sought by a Local Authority.

 

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