Decision details

10.1

The Executive Director, Place submitted a report seeking approval for the introduction of a Community Infrastructure Levy (CIL), a new way of securing contributions from developers towards infrastructure provision through the planning system.

10.2

RESOLVED: That Cabinet:-

(a)

agrees to publish a Draft Charging Schedule for public consultation, including some rates that are lower than proposed in the Preliminary Draft Charging Schedule, published in January 2013, as set out in Table 1 of the report;

(b)

agrees that the proposed CIL rates will have assumptions on realistic affordable housing requirements, as set out in Table 2 of the report. These will influence negotiations on planning applications that include an element of affordable housing; and

(c)

agrees to the publication of a number of draft documents as evidence to support the proposed CIL charges, including an ‘Interim Regulation 123 List’ setting out current potential CIL funding priority projects.

10.3

Reasons for Decision

10.3.1

The CIL will help to deliver the City’s strategic priorities for infrastructure provision, will be generated by economic growth and reinvested into economic growth and infrastructure. It will be a key funding element of the Sheffield City Region Investment Fund. Successful implementation and investment of CIL funds will make the City more competitive. However, CIL monies will reside with the Council and how they are spent will be locally determined. The focus is likely to be on strategic outcomes, particularly Great Places to Live and Competitive City.

10.3.2

The next stage in adopting a CIL is to produce a Draft Charging Schedule setting out the proposed rates that will be charged on a new development, and this will be subject to a period of public consultation.

10.3.3

The recommended CIL rates are based on the ability of development to pay. Viability assessments have provided some evidence that some development in the City can afford to pay a CIL charge to help meet identified needs for infrastructure.

10.4

Alternatives Considered and Rejected

10.4.1

One option is not to implement a CIL as it is not compulsory. Some local authorities have decided not to implement a CIL at the present time, where there are no infrastructure requirements or viability is marginal, but most Councils are working on a CIL because funding for essential infrastructure is not otherwise available (currently 155 authorities have already published a Preliminary Draft Charging Schedule). Most Core Cities are also at various stages in the process of adopting a CIL. Most local authorities who have decided not to implement the CIL at the present time have done so on the basis of either no infrastructure need or non-viability from their studies. Our viability study shows charges are viable on certain types of development in certain locations.

10.5

Any Interest Declared or Dispensation Granted

None

10.6

Reason for Exemption if Public/Press Excluded During Consideration

None

10.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

10.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing