Consultation launched on how much developers should pay to build homes and shops

East Devon District Council has announced a consultation on Community Infrastructure Levy (CIL) charges, money raised from charging developers who are building new homes and shops in East Devon.

On 20 August the Council's Strategic Planning Committee approved public consultation on a revised Community Infrastructure Levy (CIL) charging schedule, which is running from 21 August until 2 October 2019, and which will see revised charges imposed on new developments in the district.

The funds raised from CIL contribute towards delivering infrastructure to support new development.

Since September 2016, the council has been charging CIL on new residential and retail developments once they have received approval. But the council is now proposing to revise the rates to reflect the emerging Cranbrook Plan and latest Government policy and evidence.

When setting rates, a balance must be struck between obtaining money from CIL to fund new infrastructure, and the effects of the charge on the viability of new developments.

In general, it is proposed to increase the rate of CIL, but set it at a level that should enable new developments to come forward.

It is proposed that development at Cranbrook does not pay CIL, as the use of Section 106 contributions rather than CIL enables infrastructure to be delivered by the developers more quickly and at a lower cost. This has been made possible by recent Government changes to legislation, which have removed restrictions on the use of Section 106 agreements.

A Section 106 (also known as 'developer contributions') is a legal agreement between a developer (applicant) and the council, which requires them to deliver infrastructure such as schools, open spaces and community buildings, to mitigate the impact of new homes on the local community and infrastructure.

Following consultation on the Draft Charging Schedule, the relevant documents and consultation responses will be sent to an independent examiner who will carry out an examination of the CIL rates from late 2019 into the early part of 2020.

After approval from the examiner, it is envisaged that the council will start charging the new rates around spring 2020.

The council allows developers to pay their CIL in instalments, to help with the viability and delivery of development.

A revised instalment policy was also approved at the Committee meeting, which will mean that smaller sums are paid more quickly, while still allowing larger sums a longer period of time in which to be paid.

This revised policy reflects more realistically the economic reality of delivering development and will reduce administration for the council and developers. It will also ensure that the council receives CIL from smaller schemes more quickly, aiding infrastructure delivery.

Cllr Susie Bond, the chair of Strategic Planning Committee, said: "Following a unanimous decision made by the Strategic Planning Committee, I'm delighted to see the revised CIL charging schedule progressing, as it is vital that we bring in as much money as we can to deliver the infrastructure, such as roads, schools and open spaces, that our communities need.

"The contributions made by developers through CIL are an essential part of the funding for these projects. The charges strike a fine balance between securing the funding required and not preventing the delivery of the new homes and jobs that are needed to create great places to live and work in East Devon."

More information about how to submit comments on the CIL charging schedule revision consultation, can be found by clicking the red button below.