Issue details

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%.