Decision Maker: Co-operative Executive
Decision status: Recommendations Approved
Is Key decision?: Yes
Purpose:
Community Infrastructure Levy (CIL) is a
contribution that Councils can charge developers towards essential
infrastructure to support new development.
Sheffield City Council began charging CIL on
new planning permissions on 15 July 2015.
Most new development which creates net
additional floor space of 100 square metres (c. 1,076 Sq. Ft.) or
more, or creates a new dwelling, is potentially liable for the
levy. Some developments may be eligible
for relief or exemption from the levy
and some have a zero charge due to limited viability. Sheffield City Council applies a CIL Charging
Schedule and we only charge for
residential (where viable), hotels, student accommodation and some
retail (City Centre, Meadowhall and ‘major’ retail
defined as being over 3,000 Sq. m. in size).
CIL is intended to be flexible so that money
collected in the more viable parts of the city can be used to help
provide essential infrastructure in other parts of the city that
are less viable. On this basis, most of
the money (80%) goes into a central pot and the City
Council’s Co-Operative Executive will decide the priority
projects that will receive this funding. CIL is spent as part of the Corporate Investment
Fund (CIF). The Capital Strategy and
Budget Book 2021/22 – 2025/26 sets out the principles for
investment priority setting, reviewing all potential capital
projects and deciding where best to invest the Council’s
resources. A number of these projects
will require CIF funding.
The Council can retain a maximum of 5% of CIL
income to go towards the administrative costs of setting it up and
collecting it (CIL Regulation 61).
The remaining 15% is called the Neighbourhood
Portion or Local CIL.
Within the Regulations, an area that has had a
Neighbourhood Plan approved will draw down 25% towards ‘the
Neighbourhood Portion’, rather than the standard 15%.
Decision:
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18.1
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Sheffield City
Council’s approach to allocating Neighbourhood CIL is
detailed in a Cabinet Report dated 17 October 2018. This did not set out an approach to allocating CIL
in Neighbourhood Plan areas.
Sheffield now
has two approved Neighbourhood Plans – BBEST (covering
Broomhill, Broomfield, Endcliffe,
Summerfield and Tapton) and
Dore.
The Council now
needs an approach towards the allocation of CIL within
Neighbourhood Plan areas.
The report sets
out these proposals for how Neighbourhood CIL funding is allocated
and spent in areas where a Neighbourhood Plan has been
approved.
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18.2
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RESOLVED: That Co-operative Executive:-
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1) agrees that
from the date that a Neighbourhood Plan is adopted by the Council,
the CIL Neighbourhood Portion arising from a chargeable development
in the Neighbourhood Plan area is ringfenced for use in that area
and is not collected into the single Local CIL
pot;
2) authorises
the Director of Communities, in consultation with the Executive
Member for Community Engagement and Governance, to
determine
(i) how the CIL
Neighbourhood Portion is spent in a Neighbourhood Plan area,
following engagement with the Neighbourhood Forum (or other
formally constituted body responsible for developing the individual
Neighbourhood Plan), local communities and Ward Councillors,
subject to the proviso that monies are spent in accordance with the
priorities identified in the Neighbourhood Plan and agreed Ward
Priorities: and
(ii) to determine the terms on which
such expenditure is incurred including authorising the completion
of any related funding agreement or other legal documentation;
and
3) notes that
the collection and distribution arrangements for the Neighbourhood
Portion agreed by Cabinet in October 2018 will continue to apply
proportionately to any parts of a ward in which there is a
Neighbourhood Plan that are not within the Neighbourhood Plan
area.
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18.3
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Reasons for Decision
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18.3.1
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The proposals address the omission of Neighbourhood Plan areas
from the 2018 Cabinet decision on the CIL Neighbourhood Portion
and provide recognition of the valuable input of
Neighbourhood Forums in their respective areas.
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18.4
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Alternatives Considered and Rejected
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18.4.1
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The 25%
Neighbourhood Portion raised in the Neighbourhood Plan areas could
be redistributed across the city using the process approved in
2018: pooling into a single Local CIL Pot (together with the 15%
raised across the rest of the city outside parish council areas)
and allocating the total across the city per ward based on
deprivation levels using the Index of Multiple Deprivation
(IMD). This could however be seen as
contrary to the spirit of the Neighbourhood Planning
regime.
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18.5
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Any
Interest Declared or Dispensation Granted
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None
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18.6
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Reason for Exemption if Public/Press Excluded During
Consideration
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None
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18.7
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Respective Director Responsible for
Implementation
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Executive
Director, Place
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18.8
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Relevant Scrutiny and Policy Development Committee If Decision
Called In
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Overview and
Scrutiny Management Committee
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Report author: Nik Hamilton
Publication date: 18/03/2022
Date of decision: 16/03/2022
Decided at meeting: 16/03/2022 - Co-operative Executive
Effective from: 25/03/2022
Accompanying Documents:
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