COMMUNITY INFRASTRUCTURE LEVY & s106

Community Infrastructure Levy (CIL) is a levy that local authorities can charge on developments in their area to ensure facilities and services in the area have capacity to keep up with new homes and to enable further sustainable growth.

The adopted CIL Charging Schedule sets out the rate per square metre for charged developments which is payable on commencement of Permitted Development as well as Planning Permission development. Parish/Town Councils receive a percentage of the CIL charge on each development in their area – because South Marston Parish Council (SMPC) has an adopted Neighbourhood Plan it receives 25% of the CIL charge. The CIL income is to be spent by the Parish Councils to offset the impacts of development and help with infrastructure in the area. The Parish Council must report on the CIL received and spent each year and funds must be spent within 5 years of receipt. The remaining CIL income is spent by the borough council.

While some councils choose to invite public bids for CIL funding, this is not a regulatory requirement.  SMPC currently allocates CIL funding through internal parish decision-making as recorded in agendas and minutes of meetings.

Section 106 (S106) Agreements are legal agreements between Local Authorities and developers; these are linked to planning permissions and can also be known as planning obligations.

Section 106 agreements are drafted when it is considered that a development will have significant impacts on the local area that cannot be moderated by means of conditions attached to a planning decision.

Unlike CIL funds, monies received via S106 have specific restrictions on how the monies can be spent.