New form for Community Infrastructure Levy funding applications now available from East Devon
Since 1 September 2016, East Devon District Council has been charging Community Infrastructure Levy (CIL) on certain types of new development. Developers are required to begin paying this levy at various stages after construction has begun and the council is now beginning to receive CIL payments.
The council passes 15% of the CIL income generated by development in their area to town/parish councils. This figure rises to 25% if the town/parish has a ‘made’ neighbourhood plan. The remainder of CIL income must be spent by East Devon on infrastructure that supports development within the district. This infrastructure is taken from the Regulation 123 list, which was approved by the council in 2016. The infrastructure to be funded by CIL includes education facilities, transport infrastructure such as roads, community and youth facilities, and off-site open space/recreation areas.
East Devon has now written a protocol that explains the process by which stakeholders involved in the delivery of infrastructure can bid for CIL funding and how these bids will be considered. Funding bids should meet certain eligibility criteria and will need to be supported by robust evidence of the need, cost and practicality of delivering the infrastructure project, including an exploration of other sources of funding. Applicants will have six weeks to fill out a funding application form (now available on the East Devon website) by the deadline of Friday 22 September 2017. The council will then consider the bids over the following months, before making a final decision as part of the annual budget setting process in February 2018.
The Community Infrastructure Levy is a fairer, faster and more transparent way of funding infrastructure delivery. It provides more certainty than the current Section 106 system, which is negotiated on a site by site basis. However, unlike 106 money, CIL money can be spent anywhere in the district.
Unfortunately, the projected income from CIL falls a long way short of the total infrastructure costs required to deliver the Local Plan. This is because the legislation requires the charges to be set based on what is viable for developments to pay rather than what is required to deliver the necessary infrastructure. CIL was designed to be matched with funds from other sources in order to deliver projects and so difficult decisions will need to be made in terms of prioritising projects and projects should demonstrate what other funding would be used in addition to CIL. The CIL pot is never going to be able to meet all demands made on it and we will have a robust and rigorous qualification process in place to ensure that the money is well spent and in the right places.
The funding application form and further information regarding the protocol can be found on the East Devon website.
The Regulation 123 list of infrastructure that can be funded in whole or in part by CIL can be seen here: /media/1680413/adopted-reg-123-list.pdf