Community Infrastructure Levy (CIL) is a new way for monies to be raised from development to fund infrastructure . It will be charged on planning approvals issued after 1 January 2019 on relevant development. In Perranzabuloe, it will apply to housing – aside from exceptions like affordable housing and self-builds – at a rate of £100 per square metre floorspace for developments of 1-10 dwellings, and £35 psm on larger sites.
Cornwall Council has produced a very readable, short guide to CIL at https://www.cornwall.gov.uk/media/33845920/community-infrastructure-levy-charging-schedule-final.pdf .
Why is CIL relevant to preparation of an NDP?
Firstly, the parish will receive a larger proportion (25%) of CIL funds collected by CC to spend within the parish if it has an up-to-date NDP than if it doesn’t – when it receives only 15%.
Secondly, if the parish adopts a ‘second-homes policy’ – more formally known as a Principal or Primary Residence Policy (PRP) – then the CIL will drop to zero in the parish, or in the part of the parish covered by the policy. If the community were to consider adopting a PRP, like St Ives and Crantock, then the loss of these funds would be an issue to weigh in the balance.
Some technical issues about CIL
Readers might be wondering why the CIL for sites of 11+ dwellings is so much lower than for smaller sites. For those familiar with Section 106 agreements – legal agreements between Cornwall Council and the landowner or developer – CIL will not replace these on developments of 11 or more dwellings (so, housing and flats). On such sites, developers are required to provide affordable housing with substantial cost implications decided on a site-by-site basis. Also on larger sites, the infrastructure implications are often site-specific and hence the developer input will be calculated individually, and levied through that legally-binding agreement.
Why does the adoption of a PRP policy lead to a zero rate of CIL? There are two background issues.
- Rates of CIL vary greatly across the county, with the county divided up into one of five bands, according to the viability of housing developments in specific areas, as assessed by technical reports commissioned by Cornwall Council. Band 1 applies to areas such at Port Quinn and Padstow, Band 2 to St Ives (it has a substantial number of lower cost housing), with Perranporth and surrounding parishes in band 4. Band 5, applying to areas such as Camborne-Redruth, carries a zero rate of CIL.
- The CIL regulations specify that if an area has an NDP with a PRP, then the CIL in that area will drop a band. (The implications for Perranzabuloe are obvious!) The logic behind this is that the economic viability of housing development in an area will be reduced when a PRP is imposed, and that that should be reflected by the change in banding.