CIL progress update: August 2012

The Community Infrastructure Levy (CIL) has been in operation for over two years and there are:

• six authorities including the GLA that have adopted schedules
• three that have been through examination and not yet adopted
• a few more waiting in the wings either at examination or about to go to examination.

It is still very early days. The authorities that have reached this stage have taken different approaches to suit their specific circumstances, with different rate structures and very different viability profiles. If you are starting work on your authorities CIL it is worth looking at their websites and seeing what may be applicable to your circumstances and what you can learn.

View a full list of the front runners

Current position on local authority CIL adoption, finalised rates, level of engagement and consultation

The front runner authorities that have succeeded at examination have rates that range from £0 to £575 per square metre illustrating the local nature of setting a CIL. In all areas, with the exception of parts of Newark and Sherwood and Roehampton in Wandsworth, residential uses are levying above £0, but there is a range between £575 per square metre on the Thames waterfront at Nine Elms, Wandsworth and  £40 per sq metre in Shropshire.

It has been fairly common for office and industrial (B use) floorspace to be rated at £0 per square metre reflecting the challenging economic and development climate and often the practical evidence of application numbers submitted for these uses. Only Redbridge, of those that have adopted, has a single flat rate, although others are following their lead. Newark and Sherwood, the first authority to go through examination, remains the most complex structure of differentiation.

Most authorities have CIL rates of between £40-£105 for residential, limited differentiation of four uses and/or only two or three geographic zones.
So far there has been very limited levels of consultation response from interested parties but where there has been early engagement by the development industry on viability assumptions, cost and values, it has been of significant value to the local authority in the rate setting.

This has resulted in reviews of the assumptions, rates or further testing of evidence to ensure that development across the area remains deliverable. It appears likely that the development industry will become more involved and engaged with the CIL setting process as more authorities develop their CILs and awareness in the development industry increases.

The table below sets out a summary of adopted rates and levels of consultation response experienced by some of the more advanced CIL front runner authorities.