Levy raises viability concerns

Feb. 1, 2008
The government has published guidance on the proposed community infrastructure levy (CIL), which was first set out in the planning reform Bill that is currently progressing through parliament. Industry has been anxious to see the detail of the proposed CIL, which was developed following the scrapping of the planning gain supplement (PGS), because of concerns over how it might operate and that it might jeopardise the viability of smaller sites. “It might not be viable for a poor regeneration area that has no land value,” explained Andrew Whitaker, head of planning for the HBF. “The contribution from the CIL might have to be taken from housing. <br><br>The CIL would clearly have to be set at a lower rate in a more deprived area.” The CIL is set to apply for developments of almost all sizes, whereas at present only 7% of planning applications are hit by section 106 contributions, according to figures from the Town and Country Planning Association (TCPA). But industry would be pleased to see that the guidance paper explicitly acknowledges these concerns. It states: “If the levy is set too high, it might cause some development to become unviable. <br><br>“Because it is the purpose of CIL to …

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