Agenda item

Report by Alastair Cunningham, Associate Director – Economic Development and Planning.

The report of the Scrutiny CIL Task Group will be circulated prior to the meeting.

Cllr Toby Sturgis presented a report which updated Cabinet on recent changes to the CIL Regulations and the work undertaken to date in terms of preparing the Community Infrastructure Levy (CIL).

The report sought Cabinet approval that the Draft Charging Schedule and draft Regulation 123 List be published for a six week period of consultation starting in January 2014 and subsequently submitted for independent examination.  The report also explained arrangements for consultation and next steps.

At the Leader’s request for clarification, the table shown on page 97 of the agenda was confirmed as the draft schedule under consideration.

Cllr Tony Trotman, Chairman of the CIL Task Group, presented his Task Group’s report as previously circulated. He noted that whilst not all of the Task Group’s recommendations had been taken on board by the Cabinet member, he did welcome the split between rates. Cllr Trotman thanked members of his Task Group which had met on ten occasions and would continue to meet as and when required.

Cllr Sturgis explained that the rate was index linked and that it was proposed to review it after two years given the volatility of various factors such as interest rates and building costs.

Cllr George Jeans submitted a statement and drew attention to a letter received from Mere Parish Council regarding small sites and hoped that the council would consider advertising that CIL could be negotiated should exception cases be made. He asked that Parish and Town Councils be consulted regarding the timing of CIL payments that may be coming to them, especially with regard to their usual precept time.

Cllr Sturgis confirmed that CIL payments would be monitored in the same way as S106 payments, and would be payable on the granting of permission.

Cllr John Hubbard considered the removal of two higher range settlement categories and taking student housing from residential and placing with hotels as a missed opportunity for maximising return. He was disappointed that rates were lower than the task groups recommendations.

It was noted that residential strategic sites were incentivised by attracting a lower CIL rate. Exemption sites would have a 7 year window on CIL liability.

Cllr Tony Deane raised concern with the consultation in its present form not allowing for negotiation within the rural communities and asked the Cabinet to defer it’s decision for further information.

Cllr Sturgis explained that large development property had a different gross development value than a single 400m² nominal property. The Government required that the levy was in place by 2015, and earlier if possible. CIL was predicated in core strategy policies and was mentioned in the City Deal offer which the council had signed up to.

Resolved:

That Cabinet:

1.            Approves the CIL Draft Charging Schedule at Appendix 1 of the report presented and draft Regulation 123 List at Appendix 3 of the report presented as the basis for a six week period of public consultation, as proposed, in accordance with the Council’s adopted Statement of Community Involvement.

2.            Authorises the Associate Director for Economic Development and Planning, in consultation with the Cabinet Member for Strategic Planning, Development Management, Strategic Housing, Property and Waste and the Associate Director of Finance, to produce the consultation documentation to accompany the CIL Draft Charging Schedule and make arrangements for consultation.

3.            Authorises the Associate Director for Economic Development and Planning, in consultation with the Cabinet Member for Strategic Planning, Development Management, Strategic Housing, Property and Waste and the Associate Director for Finance, to submit the Draft Charging Schedule for independent examination following the consultation and consideration of the outcome and, if necessary, to consult on modifications to the Draft Charging Schedule after submission.

Reason for decision:

To ensure that progress is made on preparing a CIL Charging Schedule that will enable the Council to charge CIL on new development to help pay for infrastructure within the county in accordance with the published timetable. The Council should be in a position to adopt the CIL Charging Schedule as soon as possible after April 2014, after which, according to current legislation, the Council will be severely restricted in its ability to pool infrastructure contributions from new development through the existing mechanism of Section 106 agreements. However, the Government has recently proposed extending this deadline to April 2015.