Agenda item

Report from the Interim Strategic Director of Regeneration and Environment.

Recommendations:

1.    That Cabinet approve the formal process for the allocation of Strategic CIL funds and for the process to be applied annually.

2.    That Cabinet approve delegation to the Strategic Director for Regeneration and Environment, in consultation with the Cabinet Member for Transport, Jobs and the Local Economy, to make further refinements to the Strategic CIL application form and assessment scoring (Appendices 1 and 2) if required by implementation experience or legislative changes. The allocation and spend of Strategic CIL funds would remain a Cabinet decision.

Consideration was given to the report would set out the formal process for inviting and considering applications for Strategic Community Infrastructure Levy (CIL) funding for infrastructure projects. It also described the approach to assessing project benefits and drawing up an overall programme of Strategic CIL-funded projects for Cabinet to consider. There had been no expenditure of Strategic CIL funds to date. The report did not concern Local CIL funds, which were passed directly to parish councils or spent in non-parished areas in consultation with local communities.

The Community Infrastructure Levy (CIL) was a charge that local authorities could apply to new development in their area. It was an important tool for local authorities to use to help them deliver the infrastructure needed to support development in their area. Most new developments were potentially liable for the levy while some developments were eligible for relief or exemption from the levy. For example, social housing was eligible for relief.

The total CIL income received by the Council was divided into three “pots”:

• Strategic CIL (80%) – for infrastructure to support new development from implementing the Local Plan.
• Local CIL (15%) – passed to parishes for local infrastructure priorities (25% with a Neighbourhood Plan adopted); for non-parished areas, held by the Council to spend in consultation with local communities.
• Admin (up to 5%) – retained by the Council to cover ongoing administration costs.

The amount collected was constantly updated as developer CIL payments were received. At the time of writing the report, the Council held approximately £8.4m in the Strategic CIL fund. The Council did not necessarily need to spend the full amount of Strategic CIL available; unlike Section 106 sums, CIL payments from developers were not time-limited and did not have to be repaid. This allowed the Council to accumulate Strategic CIL income to fund projects that might exceed the income currently held and/or phase funding over the life of a longer term project. There had been no expenditure of Strategic CIL funds to date.

Section 2 of the report set out the process for identifying and assessing potential CIL projects. A polit exercise had been undertaken in January/February 2024 to help test the process. The application form and assessment scoring system had worked effectively in the pilot exercise. The degree and level of information set out in the application form and provided as supporting information was a critical factor in assessing projects, and some refinements were made to the form to clarify this for applicants. Details were also provided on the Strategic CIL Funding Process.

Resolved:

1. That Cabinet approve the formal process for the allocation of Strategic CIL funds and for the process to be applied annually.
   
   
2. That Cabinet approve delegation to the Strategic Director for Regeneration and Environment, in consultation with the Cabinet Member for Transport, Jobs and the Local Economy, to make further refinements to the Strategic CIL application form and assessment scoring (Appendices 1 and 2) if required by implementation experience or legislative changes. The allocation and spend of Strategic CIL funds would remain a Cabinet decision.