Infrastructure Planning in the South East:

The Impact of CIL

Laura McCulloch

Introduction• The Community Infrastructure Levy (CIL) is in the

process of being introduced across the Country – restrictions to section 106 come in on 6 April 2015.

• There has been a great deal of speculation about what the impact of CIL might be…

• The purpose of the research was to understand what impact CIL might have on levels of infrastructure funding in the South East.

Survey of South East Authorities• All 76 local planning authorities in the South East

region were contacted and asked to provide:» Details of section 106 funding collected between

2003/04 and 2012/13

• Lower-tier and unitary authorities were asked to provide:» The cost of infrastructure identified in the IDP» The predicted level of CIL funding expected to be

raised over the plan period

71% Response Rate

17 authorities provided section 106 data for 2003/04 – 2012/13

Section 106 Contributions Collected Between 2003/04 and 2012/13

Section 106 Contributions Collected Between 2008/09 and 2012/13

53 authorities provided section 106 data for 2008/09 – 2012/13

IDP Costs and Predicted CIL Funding

Section 106 v CIL

The Impact of CIL on Funding Levels

Authorities Choosing NOT to Introduce CIL

• Seven authorities advised that the decision had been taken not to introduce CIL.

• Three cited the risk to affordable housing delivery as the reason.

• The remainder considered that they would achieve less funding than section 106.

http://www.insidehousing.co.uk/the-levy-gets-heavy/6526156.article

Limitations of the Research• Section 106 will not be replaced entirely by

CIL.

• Section 106 data provided by local authorities may include affordable housing, revenue and maintenance contributions.

• CIL viability assessments were completed in the wake of the recession.

Conclusions• SE authorities have seen an upward trend in the value of

s106 contributions collected over the past 10 years.• Upper-tier and unitary authorities have typically

collected greater values of s106 contributions than lower-tier authorities.

• Only 38% of SE authorities had prepared CIL schedules and had calculated projected CIL income.

• There is a significant infrastructure funding gap that CIL is not expected to bridge.

• 58% of SE authorities that responded to the survey are not expected to benefit from the introduction of CIL.

• BUT… the research is not conclusive and further detailed research would be needed to understand the full implications of the new regime.

Thank you!

Any questions?

Laura McCullochStrategic Infrastructure Planning Manager

Hampshire County Council

laura.mcculloch@hants.gov.uk