CIL is a new levy that local authorities are empowered,
but not required, to charge on new developments in their area. CIL
is, therefore, a tax on development.
Money raised by the community infrastructure levy (CIL) can be
used to support development by funding infrastructure that the
council, local community and neighbourhoods require. Currently,
only six authorities are charging with three more to follow
shortly. However, the expectation is that 50% of local authorities
will adopt the CIL by April 2014. That said, many have yet to start
any detailed work on how they will be dealing with the levy.
London, on the other hand, is well ahead of the curve.
Certainly one criticism of CIL is that the money raised goes
into a general pot which can be spent on projects unrelated to the
development concerned. CIL is, however, intended to be a fairer
approach to infrastructure funding in contrast to section 106
agreements, which are perceived to be negotiable and arbitrary,