Community infrastructure levy (CIL) is a new levy that local
authorities are empowered to charge on new developments in their
area. Existing section 106 (s106) charges will remain, however they
will be restricted to site-specific mitigation and affordable
housing. There should be no overlap in the use of CIL and s106,
meaning no developer will pay twice.
Money raised can be used to support development by funding
infrastructure projects. Although few authorities are currently
charging, it is expected that many will follow in the short
term.
Rates of CIL will be set by each local authority and based on a
funding gap, calculated with reference to their own infrastructure
plans. The rate bandings for CIL may be zoned and will typically be
different for residential, retail and other. The proposed rates
will be published in advance and have to be approved locally. CIL
may be a significant cost, for example Wandsworth recently proposed
a CIL rate for residential of
